I will reach retirement age in three months. For the life of me, I can't imagine not working anymore from one day to the next. Fortunately, my employer has agreed to keep me on.
It will no longer be a full-time position. My employer proposes to pay me by the hour with a guaranteed income of 1400 francs per month. That would be perfectly alright for me.
Before I make my final commitment, I would like to know what I have to consider in terms of Old-age and survivor's insurance, pension fund, accident insurance, etc.
Retirement has various consequences in terms of social insurance. Anyone who retires on a regular basis is entitled to Old-age and survivor's insurance (OASI) and pension fund benefits. If necessary, they may also receive supplementary benefits to supplement an insufficient old-age pension.
No OASI Contributions
If Johann S. continues to work after retirement, he is privileged with regard to OASI. He benefits from an allowance of 1,400 francs per month, on which he does not have to pay any contributions. That is 16,800 francs per year.
If Johann earns more than 1400 francs per month, an AHV contribution is deducted from that part of his salary that exceeds this threshold.
Advantages with the Pension Fund
Contributions to the pension fund are also waived for Johann S. after he reaches retirement age.
Some pension funds allow their retirees to request a deferral of pension payments. This is possible up to the age of 70. It can have a positive effect on the amount of the pension paid out at that time.
No Contributions to Unemployment Insurance
Anyone who has reached the statutory retirement age can no longer draw unemployment benefits. In return, these persons no longer need to pay contributions to the unemployment fund. There is no corresponding deduction from the wages.
Special Regulations in the Event of Illness and Accident
As far as sickness benefits insurance is concerned, Johann must check whether his employer has such an insurance and whether it covers the loss of earnings of pensioners. If this is not the case, Johann does not need to pay unnecessary contributions to this insurance.
Retired employees can claim most accident insurance benefits, including daily benefits in the event of an accident. However, they are not entitled to an accident insurance disability pension if the accident occurred after they reached retirement age.
Option: Work in Mandate Relationship
Johann S. can also consider the following as a retired employee: He can propose to the employer that he continue to work in a mandate relationship instead of as an employee. He would then be self-employed and responsible for paying social security contributions himself.
The OASI contributions of self-employed persons are somewhat lower after retirement. A mandate solution can also be advantageous from a tax perspective.
Johann S. now knows what he has to bear in mind and is all the more happy to continue working.