Questions and Answers 

Lebensvorsorge is:

  • insurance income to provide for one's livelihood
  • an efficient, fair, transparent, and merit-based social welfare system
  • comparable to the AHV or child benefit for all ages
  • for all residents of Switzerland

It transforms the social infrastructure that has developed over the past century into a sustainable, efficient, transparent, fair, and merit-based system. The financial feasibility is demonstrated using specific figures and amounts.

How it works

We need a new social security system, because the current one is leading us down a dead-end path. It is not financially sustainable and creates the wrong incentives. With AI and robotics, major upheavals in the world of work are also on the horizon, which further increases the necessity and urgency of finding a viable social security system.
Furthermore, today’s social security system is complex, confusing, and bureaucratic. With life-based social security, it becomes much simpler and more transparent. Benefits are paid out automatically and allocated according to need. Life-based social security is a social springboard that supports people—rather than patronizing them—in realizing their full potential.

The calculations of expenditures and revenues for the Life Provision model are based on the Ecoplan study and corresponding data from 2021. They show that the Life Provision model is financially self-sustaining. Ultimately, however, the amounts and mechanisms will have to be negotiated at the political level; the figures presented here are merely a rough guide for the Life Provision model.

Payments under the retirement plan – the following illustrative amounts are paid as monthly retirement plan payments:

  • Children receive CHF 700
  • People aged 18 to 21 will receive CHF 1,000
  • For people aged 22 to 41, the monthly amount increases by CHF 50 for each year of age (e.g., to CHF 1,400 for a 29-year-old)
  • However, the primary caregiver of children generally receives CHF 2,000
  • People aged 41 to 65 will receive CHF 2,000
  • For people aged 66 to 74, the monthly amount increases by CHF 50 for each year of age (e.g., to CHF 2,150 for a 68-year-old)
  • For individuals aged 74 and older: CHF 2,450

The plan is that adults who have not paid contributions for several years would be required to participate in a job placement program or
perform community service (similar to the current civilian service).

Contributions to retirement savings:
Contributions to retirement savings amount to 40% of gross salary, up to a maximum of CHF 2,000 per month,
while the current employee contributions of approximately 5% paid to the AHV/IV/EO, as well as the associated
employer contributions, remain in effect.

In general, all individuals in Switzerland who have made contributions to the system—or to their social security account—for several years are eligible to receive retirement benefits. However, due to the nature of the contributions, only individuals with low or no net income will receive an additional payment from the retirement plan (see also the FAQ question “What amounts are used to calculate retirement benefits?”).

The social security system includes benefits such as social assistance, AHV, basic IV benefits, EL (excluding nursing home costs), family allowances, individual premium reductions, and other smaller benefits. Unemployment insurance, IV assistive devices, EL for nursing home costs, and the 2nd and 3rd pillars remain in place.

Every job is worthwhile and puts more money in your wallet. Low incomes are supplemented by retirement savings. For wages above CHF 5,000, contributions to the system and retirement savings payments balance each other out, meaning your income remains unchanged. In this way, retirement savings act as a stepping stone: they provide security while also rewarding work.

As is already the case today (in connection with the AHV or social assistance), a social account will be maintained. However, this account will be made more accessible so that individual contributions and amounts are transparent. The idea is that anyone who fails to make contributions for an extended period of time may be required to participate in a work integration program or perform community service (similar to the current civil service program).

Today, 30% of social assistance recipients are employed—even though they must turn their wages over to social assistance. It is widely expected that this percentage will increase significantly if all jobs lead to a higher net income. Another third of today’s social assistance recipients are children and adolescents, who are provided with significantly better support through the livelihood security program than under the current system. This gives many children and adolescents better prospects for the future.
People want to be active, have a purpose, and be able to make a difference. The livelihood security program fosters motivation.

Families tend to be better off with the retirement savings plan, especially children. They have significantly better opportunities and prospects. Seniors with low AHV incomes (and without EL) also receive a higher income through the life savings scheme. Changes for social assistance recipients are such that the payout from the life savings scheme is slightly lower than it is today, but in return, any additional income is not immediately recouped. Work pays off again!

The 30% of social assistance recipients who are currently employed (even though they have to hand over their wages immediately and thus have no incentive to work) actually have more money in their wallets with the "Lebensvorsorge" program for every franc they earn. The second third of current social assistance recipients—children and adolescents—are significantly better supported by the life savings plan and are given better opportunities and prospects.

A second change stems from the requirement to make contributions, which applies to all adults. Seniors (aged 66 and older) with a good income (excluding 2nd-pillar earnings) will receive a smaller net payout from their Lebensvorsorge compared to today because they will continue to make contributions to the retirement savings fund. This is because the retirement savings system is based on a clear insurance principle: it supports people with low or no
income.

No. The pension system is not “free money.” Everyone who works in Switzerland or earns an income contributes to the system. Only those who earn little receive additional benefits. It is also proposed that recipients who have not made contributions for several years be required to participate in a job placement program or perform community service. This ensures that work remains worthwhile and the system remains socially balanced. At most, social security can be compared to the “Negative Income Tax” economic model, which was proposed by Nobel laureate Milton Friedman in the 1960s.

Implementation will take place gradually over five to ten years, for example by extending the AHV to cover the entire working life.

Financing

The Life Provision system utilizes funds released from AHV, IV (basic benefits), EL (where not used for nursing home costs), social assistance, family allowances, individual premium reductions, etc. This amounts to approximately CHF 70 billion per year, which—just as today—is allocated to those in critical financial situations. The difference is that, under the Life Provision system, this is done with less complexity and greater effectiveness. To finance this, the current payroll taxes (AHV/IV/EO, etc.) will therefore be retained. The additional income taxes are fully offset by life provision payments for individuals with an income of CHF 5,000 per month or more. For those with low wages or no income at all, life provision results in more money in their wallets.

This chart, created in collaboration with Ecoplan, provides an at-a-glanceoverview of income and expenses related to Lebensvorsorge.

Yes. Studies show that the system is financially sustainable in the long term if it replaces the existing social security programs. With lifetime provision, much of today’s bureaucracy can be eliminated, as contributions are paid out automatically. This leads to savings: less complexity and greater impact. The current 26 cantonal social assistance laws and over 2,000 municipal regulations will be replaced by the simple, transparent system of lifetime provision.

Although employers make contributions to Lebensvorsorge, they can deduct the same amount from employees’ wages. Similarly, for wages of CHF 5,000 or more per month, payroll taxes are offset by Lebensvorsorge contributions. For low-income earners, this means more money in their wallets.

Lebensvorsorge and the AHV?

The current AHV is being integrated into the lifetime pension plan. There is no longer a fixed retirement age—the lifetime pension plan provides benefits tailored to individual needs throughout one’s life. Instead of the previous AHV pension, seniors who have made contributions to the lifetime pension plan for at least 20 years will receive a monthly lifetime pension payment of CHF 2,000. From age 65 onward, this amount increases to CHF 2,450 per month for those over 74.

The pension system covers the entire lifespan—from childhood to old age. Adults pay contributions into the system, which means that only those in difficult financial situations have more money left in their wallets. After more than 20 years of contributions, you reach the amount of CHF 2,000, which increases further starting at age 65 to CHF 2,450 for those over 74. However, the obligation to contribute continues into old age. Thus, for seniors, income (excluding 2nd pillar payouts) remains subject to contributions—meaning that proportional contributions to the pension fund are due on income from, for example, gainful employment, capital market returns, or real estate/rental income. However, the contribution cap of CHF 2,000 per month remains in effect. Starting at age 65, individuals thus receive payments from the pension fund, though those in need receive greater support.

Every person aged 65 or older who has contributed to the system receives payments from the retirement fund. After 20 years of contributions, the monthly retirement payments amount to CHF 2,000, and they increase further to CHF 2,450 if the social account balance is positive. Because the contribution obligation applies even in old age—which affects only high-income individuals and does not include the 2nd pillar—those in need receive greater support. This strengthens the working-age generation, improves opportunities for children and young people, and secures payments to seniors.

Model for the Future / Equal Opportunity

Children and adolescents receive CHF 700 per month from birth until they reach adulthood (i.e., age 18). This significantly improves their opportunities and prospects.
Starting at age 18, the monthly payment increases to CHF 1,000 and rises in small increments with age to CHF 2,000. This life support system prevents over-indebtedness within the various social welfare systems and thus the risk of a mountain of debt being passed on to future generations. In addition, young people receive unbureaucratic support if they encounter financial difficulties, and even in such cases, they remain integrated into society without being stigmatized. Every
job is worthwhile; they can realize their potential and secure a growing income through gainful employment. With the transparent social account, young people can regain trust in institutions. Intergenerational justice is put into practice.

Children and adolescents will receive greater financial support than they do today, specifically CHF 700 per month. In particular, this will provide children from lower-income families with significantly better opportunities to get a head start in life. Young adults, i.e., those aged 18 and older, will receive a monthly amount of CHF 1,000, which provides substantial support during education or serves as an unbureaucratic financial bridge during a career transition. This livelihood support amount increases in small increments with age, reaching CHF 2,000 for those over 40.

Lifetime provision offers stability amid the ever-accelerating changes in the world of work. It provides financial support in the face of new employment trends such as fixed-term jobs, platform work, and temporary project assignments in low-wage sectors. It also facilitates continuing education during one’s working years as well as individual professional development, thereby enhancing the competitiveness of the Swiss economy. Lifetime provision is thus forward-looking, in contrast to the current
system.

The life savings plan is a proposal for simplifying the complex landscape of social security funds. The Swiss public and policymakers will decide whether to introduce such a model. If the introduction of a system based on the life savings model is approved, the contribution amounts and how the system works will be thoroughly discussed and defined as part of a political process.
This means that the amounts mentioned here are merely indicative figures. They will certainly be revised as part of the political decision-making process.

The introduction of a system based on the life-long savings model will take place over several years. For example, the AHV could be expanded to cover all generations. With small life-provision contributions of, say, CHF 10 per month, the system could be phased in gradually while the other social security funds are phased out. During such an implementation period, which would certainly last 5–8 years, certain transitional measures might also need to be put in place to cushion critical situations for individuals.

Social aspects

In fact, the rates are slightly lower than they are today. However, the income support system is designed to maintain a strong incentive to earn one’s own income and to primarily support those who, despite working, earn very little. Already today, 30% of social assistance recipients are employed—even though they must immediately hand over their wages. These individuals will be better off because, with the livelihood support, they earn additional income with every wage they earn. In addition, another third of social assistance recipients are children or adolescents, who are also significantly better off with the livelihood support and thus gain better opportunities and prospects. Individuals, as shown in the examples below, are better protected with the livelihood support—in an unbureaucratic manner and without stigmatization:

  1. Seven cleaning jobs for CHF 2,000/month – watch the video
  2. Impoverished pensioner living on CHF 1,100 a month – watch the video

In today’s so-called needs-based social system, these people clearly fall through the cracks. That is why
we need Lebensvorsorge!

Yes. Specific benefits, such as disability aids or unemployment insurance, remain in place because they address specific needs.

There will continue to be a need for support and counseling services (such as debt counseling, job counseling, etc.). However, these social workers will no longer have to monitor and punish people; instead, they will be able to focus on helping those seeking assistance to move forward.

Individual aspects

For part-time positions, as with full-time positions, 40% of the salary is contributed to retirement savings, with a cap of CHF 2,000 per month.
Self-employed individuals pay the same contribution on the wages they pay themselves—40% of their wages up to a maximum of CHF 2,000 per month. These contributions are paid in addition to the existing percentage-based payroll contributions for AHV/IV/EO. For workers with multiple small jobs that add up to a monthly wage of over CHF 5,000, the tax return offers the option to claim a refund of the excess contributions paid.

The pension system does not, in principle, impose any restrictions on hiring foreign workers. However, due to payroll taxes, individuals who are not yet fully integrated into the system (because they have not contributed for a long enough period) will receive lower net wages compared to today. Newly arrived workers will still find wage levels higher than in our neighboring countries, but lower than under the current system. The resident population will enjoy a locational advantage.

In cases of hardship, for individuals with a settlement permit, and to the extent required by law, these individuals may be offered the opportunity to receive social assistance through an application process. The asylum system remains unchanged.

We are currently developing a calculator that will allow you to determine, based on your individual circumstances, whether—and if so, how—your Lebensvorsorge will change. For now, you can find various examples below.

IMPORTANT: The calculations of expenditures and revenues for the Lebensvorsorge model are based on the Ecoplan
study and corresponding data from 2021. They show that the Lebensvorsorge model is self-sustaining.
Ultimately, however, the amounts and mechanisms will have to be negotiated politically; the figures shown
are merely a guideline for the Life Provision model.

The calculations below have been prepared to the best of our knowledge and belief; however, it cannot be ruled out
that different figures may be derived depending on the perspective taken.
The following illustrative amounts are included in the calculations as monthly retirement savings contributions:

  • Children receive CHF 700
  • People aged 18 to 21 will receive CHF 1,000
  • For people aged 22 to 41, the monthly amount increases by CHF 50 for each year of age (e.g., to CHF 1,400 for a 29-year-old)
  • However, the primary caregiver of children generally receives CHF 2,000
  • People aged 41 to 65 will receive CHF 2,000
  • For people aged 66 to 74, the monthly amount increases by CHF 50 for each year of age (e.g., to CHF 2,150 for a 68-year-old)
  • For individuals aged 74 and older: CHF 2,450

The plan is that adults who have not paid contributions for several years would be required to participate in a job placement program or perform community service (similar to the current civil service). Amounts are stated in Swiss francs (CHF) per month. The calculation is based on monthly wage income (taking into account the currently applicable contribution of approximately 5% for AHV/IV/EO for employees) as well as the newly added contributions/deductions related to Lebensvorsorge. Taxes are not taken into account (these remain largely unchanged).

Family(father over 40 earning CHF 8,000 per month, mother with a part-time job earning CHF 2,500, who, as the primary caregiver,
receives CHF 2,000 in parental allowance), children aged 10 and 13
Previously: Father’s gross salary 8,000, so after deduction of AHV/IV/EO 7,600; mother’s gross salary 2,500, so after deduction of AHV/IV/EO
2,375; child benefits 200 + 250. Total 7,600 + 2,375 + 200 + 250 = 10,425
With Lebensvorsorge: (Father, salary after AHV/IV/EO deductions) 7,600 – (Father, employer/salary contributions) 2,000 + (Father, Lebensvorsorge) 2,000 +
(Mother, salary after AHV/IV/EO contributions) 2,375 – (Mother, employer/salary contributions, 40% of 2,500) 1,000 + (Mother, LV)
2,000 + (Children, LV) 700 + 700 = 12,375

Couple with incomes of over 5,000 each, both over 40 (dual-income, no kids): For this couple, their income
remains unchanged. Although 2,000 is deducted from each of their salaries, they are each reimbursed this amount by the employer.

Single parents(of any age; the primary caregiver receives a basic allowance of 2,000 in any case) with two children
Previously: 4,200 according tothe Ecoplan study, consisting of various social benefit funds. In this case,
Income from wages must be returned to the social assistance fund.
With LV: (parent, LV) 2,000 + (children, LV) 700 + 700 = 3,400 (which corresponds to a 100% workload in the low-wage sector
).
With a 50% workload in such a low-wage sector (i.e., 50% of 3,400 minus the 40% payroll tax and the 5%
AHV/IV/EO additional 850) results in an amount of 4,335.

Social assistance recipient(over 40 years old, working 50% of full-time hours in a low-wage sector)
Previously: According tothe Ecoplan study, 2,600, with the entire wage subject to immediate deductions.
With LV: 2,000 and with a 50% workload in a low-wage sector (example wage 3,400): After deductions of 5% for AHV/IV/EO and 40%
LV contribution, the remaining wage for a 50% workload is 935. The total comes to 2,935.
People who are unable to work should be entitled to receive supplementary benefits from health insurance or IV-
assistance.

Retirees aged 74 and older
Previously: Average AHV of 1,863 (men) and 1,886 (women) according tothe 2021 AHV statistics.
With LV: 2,450 (this is the LV rate for those aged 74 and older). It should be noted that normal taxes must be paid on other income
(excluding 2nd pillar payments) up to a maximum monthly amount of 2,000
. For affluent seniors, this results in a lower pension income than currently provided by the AHV; however, in
this segment, the 2nd and 3rd pillars account for the majority of income—and these will remain unchanged. In particular:
The unequal treatment between married and unmarried couples (as currently applies in the AHV) is eliminated.

New immigrants with a salary of 7,000
Previously: 6,650 (i.e., 7,000 minus AHV/IV/EO contributions)
With a residence permit: Starting with the first tax payment, 4,750, and an additional 100 per month each subsequent year until the level of a resident is reached
.

Younger working person without children (29 years old) with a monthly salary of 4,100
Previously: 3,895 (i.e., 4,100 minus the approx. 5% AHV/IV/EO contribution)
With pension plan: (amount from pension plan) 1,400 + (salary after AHV/IV/EO contributions) 3,895 – (employer/salary contributions, 40% of 4,100)
1,640 = 3,655. In this case, the difference between the pension fund payout and the pension fund contribution is credited to the
personal social account or, if applicable, can be requested from the pension fund (charged to the social account) for
payment.

Trainee with a part-time job (23 years old) earning 600
Previously: 570 (i.e., 600 minus AHV/IV/EO contributions)
With Lebensvorsorge: (amount from Lebensvorsorge) 1,100 + (wage after AHV/IV/EO contributions) 570 – (employer/wage contributions, 40% of 600) 240 =
1,430

Lebensvorsorge Schweiz
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8001 Zurich

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Lebensvorsorge Neumarkt 27
8001 Zurich

Legal Notice
Privacy Policy

About Lebensvorsorge
News
Get Involved
FAQ
About Us
Contact

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