AVS /AHV contribution after FI

Taxes
1

Good morning,

I read your blog post on the subject and have come to a different conclusion.

As you state, one of the conditions is:

  • your OASI contributions paid on that income (employee + employer share) need to reach at least half of what you’d pay as a non-active person, otherwise OASI still bills you as someone without gainful employment, no matter how much time it takes (art. 28bis OASI regulation)

If you are FI, I assume your wealth is going to be 2MCHF upwards. In that case having minimal employment and hence contribution as you recommend will not fulfill the a/m requirement.

In my case, I have calculated I need a 30 Kchf annual gross income or I will be required to contribute (a lot more) based on wealth.

Or am I mistaken?

2

Not sure which blog post you are referring to, but if with ‘minimal employment’ you mean a) <50% employment or b) <9 months employment per year then the article you quoted applies. (for reference, links to the article and more detail incl. the definition of not fully employed here, in german)

So in your example I assume that you earn the 30k in a employment at less than 50%. In my understanding, the calculation goes as follows. You & employer will pay 30’000 * 10.6% = 3’180 CHF OASI contribution. On the other hand you have 2M in assets, which would result in 4’399 CHF OASI contribution. This is less than double, therefore you don’t pay any extra. If the above is correct, you would be fine with an income of 21k CHF.

Note 1): You can have some of the wealth in vested benefit accounts (2nd / 3rd pillar) and therefore exclude them from this calculation.

Note 2): While dividends are taxed as income, they get excluded from the above calculation.

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