Due to your higher AHV contributions in (early) retirement, you would receive higher pensions, AFAIK.
A fictitious income will be credited to your AHV account, based on how much you contribution as a non-working person during these years of early retirement.
Is that 5 or even 10%? If I need to pay 5k/year AHV till 65, they calculate it as 50k or 100k gross income per year?
I donât. I take issue with being prohibited from contributing - retroactively, if needed - like a Swiss person. This discrimination shouldnât exist under the (European) principle of free movement of people.
Of course it is also a pension scheme!
It pays pensions - and the more you contribute, the more youâll get out of it, in the end.
Though - and unlike many other pension schemes in Europe or the world - it is clearly a hybrid of both pension scheme and social security. This is a main reason why these discrepancies exist.
Especially for the average earner, earning about 80k/year in gross wages as you say, it very much works like a pension scheme based on contributions.
I look at it differently. Old age insurance protects you from the unpredictable variable of your life expectancy. We decided that at certain age the most of us are not able to work anymore, but we canât really plan to have enough money for the rest of our lives, because we donât know how long we will live. So I would not call living to a 100 âbad luckâ 
, because, you know, there are ways to âopt outâ if you donât want to live that long.
I wonder how big the AHV premiums will be in 2050, when the old-age dependency ratio reaches 50%. In some places it will be even 80%. Thatâs 80 people aged 65+ for every 100 aged 15-64.
Important to note that itâs just my understanding from source. See here (1st page, last paragraph) as basis for your own research and/or conclusion:
âDa NichterwerbstaÌtige kein Erwerbseinkommen vorweiÂsen, wird aus ihren BeitraÌgen ein fiktives ErwerbseinkomÂmen konstruiert und auf ihrem individuellen Konto gut geschriebenâŠâ
Maybe before you start bashing me, you can consider, that gold does not feed people. In the end if there are 2 million people working and 1 million retired, then these 2 million have to provide for 3 million. So the dependency ratio is very important. OK, maybe it will not be deducted directly from the salary, but it will be taxed in some way.
Can I get my thread back and letâs move the AHV discussions somewhere else? Pretty pleaseâŠ
IMO there are a couple of important questions:
Especially the last 2 questions are tricky. Ideally you withdraw five 3rd pillar accounts with 61-65 and 2nd pillar accounts 66-70 (if you have just one, then when you are 70). That way they can stay invested taxfree long after you retire. But you still account for them in your overall assets. Lets make an example:
1 million CHF taxable
0.5 million CHF tax-deferred
If you stick with 4%/year withdrawing, that would translate to 60k/year. If you are 50, that might just work out fine. But if you are 45, you might end up depleting your taxable account before you withdraw enough retirement assets.
Thereâs an online calculator for AHV:
@Bojack you could split these topics into a new thread, indeed 
This thread covers a similar topic, btw.
I only started with beancount recently and changed my mind about some of the accounts dozens of times already. I thought of booking Taxes as liabilities but I didnât like it because in my mind it is expenses.
So in the end (or at least for the moment) what Iâve settled for was keeping Taxes as Expenses. However I book the difference of the taxes I paid in source taxes versus the taxes I should have paid (tax declaration) as Liabilities.
On the other hand, based on a post from the MMM blog I decided I needed to track my expenses without Taxes too. So I am doing that with bean query. I used this one:
2018-01-01 query "net_expenses_years" "
SELECT
sum(number) as Total
FROM
year
WHERE
account ~ 'Expenses' and not account ~ 'CH:Taxes' and not account ~ 'CH:Contributions'
GROUP BY year
ORDER BY year
"
â> You can add this to your bean file and then when you go to fava on the bean query page, you can type call this query like this:
run ânet_expenses_yearsâ
Also in Fava, when you are on the graph with the expenses (Income Statement > Expenses), you can insert this on the top to filter the Taxes out (assuming the account is name has Taxes in it):
^(?!.Taxes).
I hope this helps.
Cheers,
Honestly, in light of how youâve been berating others on this thread to be âwrongâ and accused them of not having âdone their homeworkâ, this assertion seems downright ludicrous.
Switzerland of course has a bilateral agreement with the EU that provides for free movement people, right to settle and a coordination of social security systems. Within the covered area, Switzerland adopts EU law with relatively few exceptions. One governing principle of which is that people shouldnât be disadvantaged due to relocating, compared to âlocalsâ.
I have sources and links if you need to have that spelled out further.
Crucially, the German system does not discriminate in the context of the European principle of free movement. For example, having worked in Germany for only 2 years, you can fulfil the required minimum with 3 additional years in any other EU member state.
Wer im Ausland studiert und nichterwerbstĂ€tig bleibt und den Wohnsitz in der Schweiz aufgibt, kann die AHV bis zum 31. Dezember des Jahres, in welchem das 30. Altersjahr vollendet wird, weiterfĂŒhren. ZustĂ€ndig fĂŒr den Beitrag ist die Schweizerische Ausgleichskasse.
So students that study abroad are not discriminated against.
So if you studied abroad in the last 5 years you can still pay it for those years.
âWer ⊠den Wohnsitz in der Schweiz aufgibtâ!
You must have had one in Switzerland to begin with.
Thatâs the point:
In case it needs clarification: Itâs the ones that have grown up and studied abroad.
Person A) grew up in another EU member state, did their degree abroad. At age 25, person A immigrates to Switzerland and begins working until retiring at the the standard pension age of 65. After having worked here for 40 years, he or she will then have a multiple year AHV/AVS gap and therefore receive a considerably lower pension thanâŠ
Person B) same, but grew up in Switzerland, studied in Switzerland (or abroad), takes up work in Switzerland at 25, retires at 65. Even earning the very same amounts of money over 40 years as Person A, B will in many cases receive a considerably higher pension.
If free movement of people was free of discrimination, the outcome in monthly AHV pension should not make (that great) a difference.
After all, the amount of pension from AHV/AVS - like many other pension schemes, and even though capped - mainly depends on two things:
And here comes in the discrimination: Person A can get valuable years of credits by contributing often only a nominal amount - de facto by mere virtue of having (had) residency in the country (note: residency as opposed to employment of seeking thereof, as is normally the case with pension schemes)
Person A should have a right to a pension from the country they emigrated from, based on the years they contributed in that country.
The relevant ordinances seem to be quite complicated so I donât really know what is applicable:
https://www.admin.ch/opc/de/classified-compilation/20112875/index.html
https://www.admin.ch/opc/de/classified-compilation/20112876/index.html
Yeah, itâs just that I guess most countries donât let you count your years as a student for the pension. (I was lucky enough to be employed during most of my studies, so I have like 7 years of french pension, maybe Iâll be able to buy my coffee with what theyâll give me when I retire 
)