I am 53, moved three years ago to Switzerland after nearly ten years in Egypt and let’s be realistic: paying 15 years (from 2022 until retirement) into AHV will not allow me to continue living in Switzerland once I retire if I won’t do myself something about it.
Reading some of MP’s blog gives me confidence that this aim can be achieved. I have two paid off properties (in two different countries) with an approximate combined value of CHF 650k. Some pension will come in from Belgium, some from private investments and some from AHV. So far I don’t have a 3a as I am still on a B-permit.
I could use some input where to start and how to use effectively the next 10 years to grow enough wealth, allowing me to continue living in Switzerland after retirement.
I don’t think we have enough information to be more helpful than what you can get by browsing the forum/searching online.
For AHV, your expected pension can be estimated using the respective table (Skala/Echelle 15 for 15 years of contributions (the number of the table matches the number of years contributed - it’s on page 78 of the following document)): https://sozialversicherungen.admin.ch/fr/d/6850/download
For 15 years, your monthly pension would be between CHF 430 (average gross income of CHF 15’120 or less) and CHF 859 (average gross income of CHF 90’720 or more). For a yearly pension of CHF 5’590 to 11’167 (13 monthly payments).
Ways to increase wealth are the usual:
savings from income
returns on investments
To know how much wealth you actually need to cover your needs, you need to calculate your expected expenses in retirement, including taxes, minus the pensions you expect to get (AHV + the Belgium one). That number would be helpful to share with us in order for us to be able to help more.
The level of savings you expect to be able to have until retirement would then set what level of risk you need to take to get to your target number (need to take risk). That would have to be balanced with your ability and willingness to take risk, which depend on your personal situation.
Assuming a good salary, I would say you’re on track to get there without much trouble.
If you have dependents (for example children under 16 or other people who you have to support), those can affect the picture and it would be an information worth sharing.
Are there specific topics you would want to cover?
You are already required to file your taxes, as your wealth (your houses need to be filed in a proper NOV declaration) exceeds the threshholds since day 1 probably. So you can and should have done a 3a already since 3 years…
You will be able to backfill these years though since the law changed.
I wonder why you only mentioned 2 out of 3 pillars of the Swiss system. What about the pension fund at work? Usually, there is a large gap to be filled at income tax advantages when newly joining this system.
Continuous employment for the next 10 years might be an erroneous assumption. Ok, there would be unemployment money for up to 2 years, but only at 70-80% of max 12k monthly salary.
I would lean heavily towards investing and compounding returns. Your real estate could be a great thing in such a scenario or a liability.
Also thanks to all who answered so far. I will roam through all information and get back once I have the base covered.
Here are already some more information: I estimate that AHV, Belgian & Czech pension, private pension will come all together to CHF 1’500 - 1’800. Enough to live in Belgium, in my own property. No way to live from this here in Switzerland.
I have as dependent only my dog, no children. Through inheritance I have some 50k to invest.
As explanation why I am not really settled yet in regards to 3a and future plans:
my return to Europe was not voluntary but due to the declining health of my father who passed away end of 2024. The battle about his estate with his second wife just finished some weeks ago.
About specific topics: I first have to read through MP’s blog and references and most probably this will answer a lot of questions. But I will revert back to you.
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