The AHV is a compulsory insurance that serves to secure the existence in old age and surviving dependents. Since its foundation in 1948, the Federal Old Age and Survivors’ Insurance (AHV) has been revised several times. Together with the disability insurance (IV), it forms the first pillar of the Swiss three-pillar system. The AHV is financed by contributions from employees, employers and the state. Contributions are financed from employee payroll deductions, employer contributions, and value-added tax. Everyone who lives or works in Switzerland is compulsorily insured.