Should I consider my 2nd Pillar as part of my Net Worth?

You can know that, as a foreigner with 10-20 years’ contributions to the 1st pillar, you’ll get 200-400CHF/month when you’re 65 :wink:

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It is difficult to add a single number to your net worth. That’s for sure. But it also doesn’t make sense to ignore it in your retirement calculations and whatever else is related to that. e.g. how much risk you need or are able to take before retirement, FIRE withdrawal rates etc

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I do a cash flow spreadsheet, which shows how much expenditure I have each year.

For Pillar 1, I can show the cash inflows relating to pillar 1 on a year by year basis.

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Well, for someone who fully worked in Switzerland it is 2500 CHF/month and for a couple close to 4000 CHF/month. Assuming e.g. 20 years in retirement → close to 1 million.

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For me it is a bit under 2k, but even though it is not the full pension, it is a worthwhile amount!

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Sure. But as a future income stream, not as wealth. Unless you convert it using a safe withdrawal rate… which makes valuation of this construct even less certain.

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Yeah I was exaggerating, it’s not like that but it’s not much and it is assuming I work here until I am 65 which I don’t want to do.

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Maybe one could calculate what the pillar 1 yearly pension would be with contributions up to now, multiply that with 25 to simulate a 4% withdrawal rate, and calculate what this sum of money “received” x years in the future is worth today with a return of, say, 6%.

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sorry but globally you can consider 50ch per working year so for 20 years you should receive 1000 CHF per month from 1st pillar

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Sure, but I’m 42, I don’t want to work anywhere, and especially not in CH for 20 more years, hence I don’t consider the AHV at all.

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Fine if you are going to leave CH. But if you stay in CH for a while, even if unemployed, you still need to contribute to AHV and so it can grow to a significant amount.

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You can actually calculate how much you are going to get here: https://www.acor-avs.ch/conjoint
It gives a pretty accurate estimate to add to your projected income, based on when you’ll stop working.

You can also request a statement to know exactly how much you paid in so far, and then add how much you paid monthly multiplied by two (your employer contribution). It’s not properly a component of your Net Worth, but if you consider it as a capital which is going to pay you a monthly dividend, then it makes some sense to have it added to your Net Worth.

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Thank you all for the feedback. I’m pleased to announce that starting 2025 I’m considering the 2nd Pillar as part of my Net Worth :joy:
This forum is too convincing.

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