Controversial AHV funds Why children are worthwhile for Swiss pensioners in Thailand

Anyone who becomes a father again at retirement age is entitled to a child pension. It's a good way to live in Thailand. Parliament now wants to abolish it.

Thousands of Swiss pensioners have settled in Thailand. Anyone who then becomes a father again or takes in a foster child is entitled to a child pension from the AHV pot in Switzerland.

Hans Steinmann became a father again 2.5 years ago. In addition to his CHF 2,000 AHV, he receives a monthly child pension of CHF 811 for his son. The same amount for his half-sister. That's a lot of money in Thailand.

"Without this money, I would be at the limit. I wouldn't be able to send the children to a good school and children cost money here too," Steinmann toldSRF Rundschau. His son's child pension is three times as high as an average salary in Thailand.

Women are much less likely to enjoy such additional pensions - for biological reasons.

4.4 million francs a year

According to Swiss AHV/IV legislation, pensioners are entitled to child pensions. If it is their biological child, but also if it is a stepchild. You must be able to prove that you are married to the child's mother or father and that you live with the child at the same address.

The AHV contributions that flow to Thailand for child pensions have increased significantly in recent years. Around 400 pensioners (as of 2021) are currently receiving child pensions in Thailand. This corresponds to a contribution of CHF 4.4 million that is taken from the AHV pot each year.

The SVP does not agree with the child pension at all. SVP National Councillor Erich Hess says: "Especially in countries with low purchasing power, if the children are recognized as foster children, you can collect the pension and live a royal life. It is unacceptable that thousands of children abroad are financed by Swiss taxpayers."

Child pensions have been an ongoing issue ever since parliament wanted to abolish them. Not only for pensioners in Thailand, but also pensioners in Switzerland should no longer receive them. The Federal Council is against the abolition. Next, the Council of States will debate the preservation of the child pension.

No increased risk of abuse

Jan Schäfer, who runs a Swiss hotel in Thailand and has children of his own, tells Rundschau: "We don't need to talk about whether we should abolish it or not, but rather refine it. For example, that you only get a child pension for your own biological children."

Many fear that there is a greater potential for abuse behind child pensions: that pensioners need the money for themselves and not for their children. The Federal Social Insurance Office emphasizes to "Rundschau" that they do not believe there is an increased risk of abuse: "So-called cases of abuse are not recorded because it is not possible to define when it is abuse."

Hans Steinmann responds to the accusation: "I need the money for the children, and some of it for food. My daughter has a motorcycle that she rides to school. Private schools are expensive. The uniform and all the documents also cost money."