Swiss social security contributions when living on savings

Do I have to pay social security contributions even if I do not earn an income and live on my savings only?

Yes. Every adult registered with a Swiss social security office who has not reached retirement age is required to make at least a minimum contribution of 478 francs per year (January 2017).

Depending on how much personal wealth you have, you may be required to pay more than this minimum.

If your total personal wealth comes to less than 300,000 Swiss francs, the minimum contribution applies. The required contribution increases along with your fortune. Those with 300,000 – 350,000 francs in assets must pay CHF 512.50 and if you have 350,000 – 400,000 francs you pay a minimum of 615 francs. A 400,000 to 450,000 franc fortune commands a 717.50 franc minimum contribution.

Those with 450,000 to 500,000 francs in assets pay a minimum social security contribution of 820 francs and if you have more than 500,000 francs you must pay a minimum of 922.50 francs per year. Those with assets of 1.8 million francs or more must contribute a minimum of 3656.50 francs annually. After that, every additional 50,000 francs of wealth results in the minimum contribution increasing by 154.50 francs per year. The maximum amount which can be contributed to social security in one year is 24,000 Swiss francs.

The minimum contribution you make directly impacts the pension you receive from social security in your old age. Making the lowest minimum payment (478 francs per year) secures the lowest social security pension (15,000 francs per year for a full pension). The 922.50 franc minimum contribution charged to those with a fortune of more than 500,000 francs secures a social security pension of 25,000 francs per year. The highest social security pension you can get is currently 28'200 francs per annum.