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Re: swiss-list: AHV / AVS with a stipend

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From: Louis Perrochon (click for textversion of email address )
Date: Thu May 27 1999 - 14:01:48 PDT

>Comments are welcome.

Well, the US social security is similar to AVS and both do not pay enough
for a living without serious cut backs. And Switzerland has 2nd and 3rd
pillars which are oriented to personal savings (no extra penalty for not
paying 2nd pillar, 3rd pillar is completely personal decision). Putting all
of it in the stock market vs. more conservative investments like
Governement bonds or so is a personal decision.

I guess, if you are on a stipend, and you pay the minimum, AVS seems a good
deal. The maximum income that counts for the AVS pension is probably still
less than $50k. But you pay premiums on you whole salary. If you have a
salary (especially a Silicon Valley High-Tech one), paying over 10% for
swiss AVS seems like a very bad deal. Your probably still better off giving
up AVS and putting the money into treasury bonds. These are as safe as AVS.

BTW, I thought there is a totalization agreement between the US and
Switzlerand, so the years paying SS tax should count towards AVS, no?

Louis

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