– No more AHV money for children of pensioners
Anyone who still has small children at retirement age will receive additional money from the AHV. A National Council commission wants to abolish that. The Federal Council warns of poverty.
Published: January 19, 2024, 4:31 p.m
Anyone who still has children in old age receives generous additional pensions.
Foto: Getty Images
Become a father at the age of 50 or more? This is no longer uncommon. Around one in fifty fathers is over 50 years old when their child is born. One consequence of this is that more and more children are still minors or in training when their father – or, more rarely, their mother – retires. There are around 7 out of 1000 children.
The AHV pays a pension for these children. Pensioners with children under the age of 18 or with young people in training up to the age of 25 are eligible. According to the Federal Social Insurance Office, around 31,000 child pensions are paid out to around 24,000 fathers and mothers (as of December 2022). That is about three times as many as in 2001. The costs amount to more than 200 million francs a year.
In the future, having children late should be at your own risk: The Commission for Social Security and Health of the National Council (SGK) wants to abolish child pensions. She decided this with 16 votes to 9. She has submitted a motion to the Commission, which Parliament will decide on. The change should only apply to new pensions. AHV pensioners with children who need additional resources would be supported through supplementary benefits. According to the text of the motion, those with low pensions should be better off than today.
Increasing risk of poverty
The Federal Council rejects the abolition of child pensions. Only recently did he re-examine the idea when revising widows’ pensions – and rejected it. The Federal Council argues with the risk of poverty and equal opportunities: the risk of poverty among minors would increase from 28 to 41 percent, and educational opportunities would decline among young adults.
At retirement age, income drops sharply and pensioners are not entitled to family allowances, writes the Federal Council. The purpose of child pensions is so that parents can meet their maintenance obligations. One possibility would be to reduce child pensions. However, this would contradict the principle that the AHV and IV benefits are the same.
Already disadvantaged today
The abolition of child pensions was already discussed during the last AHV reform. At that time, the Federal Council had a study carried out on the financial situation. The result: Children with old parents already live more often in an economically weak environment than children with younger parents.
According to the study, the median income of the affected families is around 55,000 francs. So half of the families have more money, the other half have less. The poorest quarter has less than 36,800 francs at its disposal. If child pensions were abolished, the median income would fall to 46,900 francs. The poorest quarter would have to get by on a maximum of 29,900 francs, which is below the poverty line.
Higher than child allowances
The critics of AHV child pensions reply that those in need receive supplementary benefits anyway. They are also bothered by the fact that child pensions are higher than the child allowances that working people receive. Depending on the canton, those who work receive 200 to 300 francs per child, and those who receive a pension receive twice to three times as much, depending on their previous income.
Opponents also criticize that AHV recipients who earned a lot before retirement receive higher pensions for their children than those with lower incomes – after all, children’s pensions, like AHV pensions, depend on previous income.
Thailand as a popular destination
Children’s pensions are particularly important for pensioners who live in countries with low costs. Thailand is popular: more and more Swiss pensioners are settling there – and some are starting a family again. The AHV spends over 4 million francs annually on children’s pensions for Swiss citizens in Thailand.
However, around two thirds of children’s pensions go to pensioners residing in Switzerland. The average child pension that flows abroad is around 400 francs, and that in Switzerland is around 730 francs. Swiss people receive most of the child pensions abroad. Foreign nationals who have worked in Switzerland and return to their home country after retirement make up a small proportion.
Charlotte Walser has been part of the Tamedia editorial team at the Bundeshaus since 2021. The doctor of philosophy has been working as a journalist since 1995.More information
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2024-01-19 21:49:52
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