Financial changes 2025 explained AHV, IV, 3rd pillar - what's changing in your wallet now

AHV, IV, 3rd pillar: numerous new rules have been in force since the start of the year. But what do they mean for me? blue News explains the changes.

In 2025, several financial changes will come into force in Switzerland that will have an impact on Swiss people's wallets.

However, these changes are not always easy to understand. blue News provides helpful tips and explains what is behind these changes and how they will affect your wallet.

From January 1, 2025 , old-age and survivors' insurance (AHV) and disability insurance (IV) pensions will be increased by 2.9 percent to take account of current price and wage trends. This means that the minimum OASI/DI pension will rise from CHF 1225 to CHF 1260 per month, while the maximum pension will increase from CHF 2450 to CHF 2520.

This adjustment is intended to help maintain the purchasing power of pensioners and counteract the rising cost of living. It is the first pension increase for several years and is seen by many as a necessary step to ensure social security.

In addition to pensions, other benefits such as the helplessness allowance will also be adjusted. In the event of severe helplessness, the compensation for AHV recipients will rise to CHF 1008 per month.

The maximum tax-deductible contributions to pillar 3a will be increased. For people with a pension fund connection (second pillar), the maximum amount will rise to CHF 7258 per year. For employed persons without a second pillar, the maximum amount increases to CHF 36,288 per year.

These adjustments will allow insured persons to set aside more for their private pension provision and at the same time benefit from higher tax deductions.

From this year, it will also be possible for the first time to pay missed contributions into pillar 3a retrospectively. The prerequisite is that income subject to AHV contributions was earned in the year in question.

These subsequent payments are possible in addition to the regular annual contribution and are fully deductible from taxable income.

But beware: the changes will only apply from 2025, so you will not be able to make any purchases for previous years this year. In practice, this means that in 2026, for example, you will be able to make a retrospective purchase for the first time for 2025. People who have made no or only partial payments by then can make up these contributions retrospectively for up to ten years.

After years of falling premiums, many Swiss car owners will have to prepare for higher car insurance costs in 2025. According to Comparis, several providers have announced premium adjustments.

Six out of 13 insurers surveyed have announced a general premium adjustment for 2025. Individual premium increases for existing contracts are possible with four providers.

Insurance premiums on the riseIn 2025, drivers will be on the money

The minimum annual contribution to AHV, IV and EO for non-employed persons will be increased from CHF 514 to CHF 530. For self-employed persons, the lower limit of the declining contribution scale will be raised to CHF 10,100 (previously CHF 9,800) and the upper limit to CHF 60,500 (previously CHF 58,800).

These changes mean that people on low incomes will now have to pay higher contributions. The aim is to secure the financing of social insurance in the long term and to meet the demographic challenges.

The contribution rate for employees remains unchanged, but the limit for low wages has been increased to CHF 2,500 per year. This means that wages up to this amount only have to be deducted if employees wish to do so.

The federal minimum rates for child and education allowances will be increased as of January 1, 2025. The child allowance will rise from CHF 200 to CHF 215 per month, and the education allowance will increase from CHF 250 to CHF 268 per month.

This measure is intended to ease the financial burden on families and improve support for children and young people in education. This is the first adjustment to the allowances since the Family Allowances Act came into force in 2009.

The exact amount of the allowances may vary depending on the canton, as some cantons set higher contributions. It is therefore advisable to find out the specific amounts from the relevant family compensation fund.

Health insurance premiums are rising by an average of six percent this year. For adults, the average premium will rise by CHF 25.30 to CHF 449.20 in 2025. Young adults will have to pay 16.10 francs more and thus 314.10 francs. The average premium for children will rise by CHF 6.50 to CHF 117.90.

Due to the ageing population and new therapies and medicines, costs will continue to rise in the future.

However, anyone thinking about changing insurers now because of the increased costs is out of luck. A change should have been made by November 30 of last year for the year 2025. The next switch is not possible until 2026. However, it is advisable to wait for the premium increases in the fall before making a comparison.

The entry threshold for mandatory occupational benefits insurance will be increased to CHF 22,680 per year. The coordination deduction will rise from CHF 25,725 to CHF 26,460.

These adjustments affect the calculation of the insured salary and therefore the contributions to the pension fund. Employees with low incomes must therefore earn more in order to be included in the BVG.

For employers, this means adjusting their payroll accounting to take the new thresholds into account correctly.