Not sure what you mean here because in the table, you can clearly see that it is increasing with age. Even if you have zero salary increase, the amount you can contribute is increasing each year.
Yes, there are multiple different tables, one for early retirement etc. One for savings etc.
It’s the maximum amount and you have to deduct the existing balance.
Another illustrative example: Let’s say you have maximum contributions on the fictional 100k at 25.
Amounts of course depend on the level of contribution and interest. Possibly there’s some increase embedded, but not nearly as big as the rising % imply.
Technically, that is still an option yet is a very dangerious one. Buy ins for early retirement become nill and void if you for one reason or another don’t early retire. Given I am still a few centuries from retirement - I don’t want to speculate on this yet. So at the moment, I can not pay into my pension fund unfortunately, but this may change again the last few years before (early) retirement.
Continuing your example. 5 years later, assuming you made 15k of contributions and no pay rises. Your max is 190k. You have already 95+15=110k. So you can buy in additional 80k.
Not sure how you get buy in of zero for your age 35 example.
As you can see, each year, you can contribute a max extra 20% of salary in the CS example (more if you consider early retirement funds, savings etc.).
In the example, the author had already 200k of voluntary. If that is going up by 20k each year (more if salary also goes up and also considering other potential contributions). Then that’s a lot of headroom for contributions. Even if they make 40k of contributions per year, that’s still over 10 years of headroom.
Looking at CS example. At 35 years of age you can have:
220% purchase 1
500% early retirement
415% bridging pension
which is quite substantial.
In my own pension fund, I see I have a maximum of around 800% currently.
Lets calculate things at the CS example. Reference:
PK1_2023_Leistungsreglement_DE.pdf (credit-suisse.com)
Trust me… these tables are accurate and they do reflect how your pensions savings evolve. This based on a certain assumption on both salary increase and interest payment. There are plenty of checks and balances to ensure that both the assumptions are sensible and the calculations are correct. This as there otherwise was potential for tax evasion.
In practical terms: If you were at Zero Buy-In Potential at 35, you had a zero salary increase round (as it can happen at banks and beyond 35 to 40)… and yet you still got 3 to 5% of Interest on your Pension Pod… you are now likely beyond your max purchase potential and need a couple of high salary increases to get back into the range where you can buy into the pension fund.
The problem with the CS Pension fund is that it is simply nuts. When you see how much they credit you in higher years… you will understand why they come up with these massive amounts. But exactly these pension contributions are as well the reason why CS was not a good place to be if you were aged older than 55 - you simply became too expensive to maintain.
It was 15k per year. I assumed 15% contributions. Just saw TeaGhosts link to the reglement and added these numbers to an old spreadsheet of mine. My main point for this side discussion remains that buy-in potential is not dependend on age per se but on missed contributions.
Same example, starting at age 18 as per reglement, stable 100k insured and 2% interest.
Buy-in actual is Buy-in max CHF - existing balance (at max contributions).
| Age | Employee | Company | Total | Buy-in max % | Buy-in max CHF | Buy-in actual |
|---|---|---|---|---|---|---|
| 18 | 10.0% | 7.5% | 17’675 | 18% | 17’500 | - |
| 25 | 10.0% | 7.5% | 135’457 | 150% | 150’202 | 14’745 |
| 30 | 10.0% | 7.5% | 241’537 | 257% | 256’906 | 15’369 |
| 35 | 12.0% | 13% | 366’233 | 382% | 382’215 | 15’982 |
| 40 | 12.0% | 13% | 535’753 | 552% | 552’098 | 16’345 |
| 45 | 14.0% | 18% | 729’482 | 746% | 746’162 | 16’680 |
| 50 | 14.0% | 18% | 970’973 | 988% | 987’750 | 16’777 |
| 55 | 14.0% | 25% | 1’245’174 | 1262% | 1’261’983 | 16’809 |
| 60 | 14.0% | 25% | 1’579’760 | 1596% | 1’596’289 | 16’529 |
That’s an important point.
If you have a mortgage it’s the possibility to get it out earlier to avoid that.
