# Investing in 2a

If you want to calculate your aprox. AHV Pension you can do that online.

If you want more exact figures and want to understand how it’s done here a general description.

First you calculate how much your insured average yearly income will be (until you get retired). This is really a simple average. If the first year your income was 50’000 and the second 10’000 your yearly average income for these two years will be 75’000.

A good starting point can be to find out how much your insured Income was till today. This can be found out if you order a “Statement of individual account”. This statement is free.

Suggestion for everybody: It is suggested for everybody to order a “Statement of individual account” in the AHV in order to insure that everything is correct. Mistakes do happen here, especially if you change employers or have more than one, and it can be difficult to correct the mistakes if you find out at age 65 (probably about 30 years after the mistake happened).

Second you think of additions and subtractions to your average income that will apply.

Typical addition is when you have children (Erziehungsgutschriften). You get ad addition of 42’300 (3x the minimal AHV pension) for every year that you had a child younger than 16. This addition is spitted 50/50 for the two parents.

Another typical addition/subtraction is after a divorce. The AHV of both partners is splitted 50/50 for the years they were married.

Now you have your average yearly income that applies for the calculation.

Third, you go to Scale 44. (Skala 44). Here you can find how much would be your pension if you have contributed your calculated yearly income for 44(men)/43(women) years. This pension is between 14’100and 28’200.

Now you have how much your pension would be if you had contributed for 44/43 years

Fourth, you calculate what will be reduced because of missing years. The calculation is linear. You loose 1/44 resp. 1/43 for every year without contributions.

Fifth, you calculate how much there will be reduced if you want to retire before 65/64. if you plan to retire before 65(men)/64(women) you calculate how much there will be reduced for the early retirement. You can retire up to two years upfront. For every year you retire before you will have a deduction if additional 6,8%. (Additional to the missing 1/44 resp. 1/43 from step 4)

To sum up:

• A approximate AHV pension can be calculated easily online
• Everybody should order his statement of individual account periodically (e.g. every 5 years) in order to assure that everything is correct there
• To have an exact calculation you have to take some individual factors into account and invest a bit more time and effort to understand the details
• It is possible to have pensions bellow the “minimal” 14’100. It is actually also quite probable if somebody contributed a lot less than 44/43 years
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