Calculate OASI Deferral
Defer OASI pension: supplement, break-even and cumulative advantage over time.
Anyone who does not draw their OASI pension immediately receives a lifelong supplement. Deferral is possible for 1-5 years (Art. 39 AHVG). The supplement rates are fixed and range from 5.2% (1 year) to 31.5% (5 years). Whether deferral is worthwhile depends on life expectancy and the tax rate.
The supplement rates
The supplements are set out in the OASI Regulations (SR 831.101, Art. 55bis):
The supplement applies for life and is also applied to future pension increases.
| Deferral | Supplement |
|---|---|
| 1 year | 5.2% |
| 2 years | 10.8% |
| 3 years | 17.1% |
| 4 years | 24.0% |
| 5 years | 31.5% |
When is deferral worthwhile?
The break-even typically lies 10-15 years after the end of the deferral. This means: someone who starts at 66 (1 year deferral) benefits from approximately age 76-81.
Deferral is more worthwhile with:
- High life expectancy
- Low marginal tax rate (OASI pension is taxed as income)
- Other income during the deferral period (e.g. part-time work)
Tax effect
The OASI pension is taxed 100% as income. A higher pension leads to more taxes. At a marginal tax rate of 25%, only CHF 75 net remains from CHF 100 additional pension. The break-even extends accordingly.
During the deferral period, no OASI income is received -- the tax rate on other income may be lower.
Frequently Asked Questions
- Can I end the deferral at any time?+
- Does the deferral also apply to spousal pensions?+
- What is better: deferral or investing the capital?+