money or house? Albanians who have lived and worked in Switzerland for decades have a decision to make when they retire. If they return to their country of origin for the rest of their lives, they will not receive an AHV pension – even if they have paid premiums for it. The reason is the lack of an agreement between Albania and Switzerland governing the payment of AHV and IV pensions. Albania is the only Balkan country with which no such agreement exists. Not yet.
Such an agreement has already been signed. Five years ago, Albania knocked on Switzerland’s door. Due to the corona pandemic, the conclusion of the contract was delayed. The only thing missing now is the green light from Parliament. The National Council will decide on Monday – the yes should be just a formality. The Council of States must then agree.
Union is happy
Hilmi Gashi of the Unia trade union welcomes the fact that pensions will soon be flowing to Albania. “Social security in old age is important.” The free choice of where a person wants to live after retirement is, according to him, one of the fundamental freedoms.
“There will be many people who will return to their homeland if this agreement is reached,” he said. After all, life in Albania is much better with a Swiss pension than in Switzerland, given the lower cost of living. Currently, about 3000 Albanians live in this country.
The federal government also expects that the payment of pensions abroad will prompt some Albanians to leave Switzerland. This can result in savings because, for example, these people can no longer receive a supplement, premium discount or assistance.
On the other hand, there will be more pension benefits in the future as a result of the agreement, because people are now entitled to money that they were not entitled to before. The federal government assumes additional costs of CHF 2.5 million per year.