Retirement in Switzerland: what you need to know

Ordinary retirement

The statutory retirement age (known as the reference age) in Switzerland is 65 for men. The reference age for women will be increased gradually from 64 to 65 by 2028.

Early retirement

Most people in Switzerland can draw their OASI (state) pension from the age of 63. The increase in the statutory retirement age includes a special provision for women born between 1961 and 1969: they can start drawing their pension from the age of 62.

Most occupational pension funds allow their members to draw their retirement benefits early – from the age of 58 or 60. Many pension funds offer early retirees a bridging pension until they reach the statutory retirement age. However, bridging pensions are often deducted from their pension fund balance, resulting in a lower pension.

In principle, the earlier you draw a pension, the more it is reduced – and this reduction applies for the rest of your life. Personal savings and pillar 3a assets are often a better option than drawing an OASI pension early to bridge the income gap in the case of early retirement. You can withdraw your pillar 3a assets as soon as you've just five years left until you reach the reference age – from the age of 60 for most people.

If you'd like to retire early, you should also bear in mind that you'll have to continue paying OASI contributions until you reach the reference age, based on your assets and any pension income you may receive.

Deferred retirement

If you continue to work, the OASI system and most pension funds allow you to voluntarily defer the withdrawal of your pension for up to five years after reaching the reference age, while continuing to make contributions to pillar 3 during that time. Deferring withdrawal will increase the pension you receive for the rest of your life. Whether it's worth deferring pension payments depends primarily on your life expectancy and the tax you pay.

This may be worthwhile if you aren't yet eligible for the maximum OASI pension. As a result of the OASI reform, contributions paid after the age of 65 can now also lead to a higher pension.

Partial retirement

Gradually reducing your working hours has several advantages. Phased retirement (partial retirement) has become much simpler following the latest OASI reform, which came into force at the start of 2024, as pensions can now be drawn more flexibly. For instance, you can draw your state and occupational pensions at the start of any month between the ages of 63 and 70, or even just a portion of the pension (women born between 1961 and 1969 can do so from the age of 62).

Many pension funds offer even more flexible withdrawal options, for example by allowing partial withdrawal of retirement benefits from the age of 58 or 60, or by permitting working hours to be reduced in more than three phases.

Retirement for women

From 2025 to 2028, the reference age for women will be increased by three months each year until the standard retirement age for all women is 65, the same as for men.

Special provisions apply under the OASI system for the first nine age cohorts affected by the increase in the statutory retirement age (known as the transitional generation). Women born between 1961 and 1969 can choose whether to continue working until the new reference age and, in return, benefit from a lifelong pension supplement or whether to draw their pension early on more favourable terms than usual. They can take early retirement from the age of 62, rather than 63.

The five key steps to take before retirement

1. Draw up a budget by the age of 55 at the latest and use it as the basis for a financial plan to see where you'll stand financially after retirement.
    
2. Make the most of the time you have left until retirement to save capital in the most tax-efficient way possible, so that you can top up your income in retirement – for example, through pension buy-ins.
    
3. If you wish to have some or all of your pension fund balance paid out, you need to give advance notice of up to three years, depending on your pension fund. Carefully weigh up the pros and cons of the various pension withdrawal options.
    
4. Where possible, spread the withdrawals of your assets from the occupational pension fund and your pillar 3a over several years. Under certain circumstances, this could save you several tens of thousands of francs in tax.
    
5. You must notify the compensation office that you wish to draw your OASI pension – ideally three to six months in advance, so that your first payment is made on time.

Comprehensive retirement advice at VZ

Nobody has as much experience with retirement issues as the experts at VZ VermögensZentrum. Thanks to retirement advice from VZ, you'll be better prepared for retirement and you'll be able to rest assured that your income is secure well into old age. Every year, we help several thousand people to draw up a financial plan for their retirement.

Find out more about retirement advice from VZ.