Retirement

How much OASI pension will I receive?

In 2022, the maximum individual pension is CHF 2,390 per month, while a married couple together receive up to CHF 3,585. Your personal pension might actually be a lot lower. This primarily depends on your average earned income, the number of years you have contributed and any parental or care credits you receive. 

Pension fund: Better to receive a pension or take a lump sum?

There is no universally accepted answer to this question. The decision you make will not only impact the amount and security of the income you receive after retiring, but also your financial flexibility, tax situation and the degree to which your family is looked after. That is why it is important to understand the differences and carefully consider which option is best for your personal family situation and your finances. 

How can I rescue my pension?

Continually low interest rates combined with increased life expectancy: None of this makes it any easier to manage a pension fund. Anybody who retires in the future will receive less money than pensioners today. That is why it is important that you take the bull by the horns and take action in good time so that you can enjoy your retirement without any concerns over your finances. This could involve paying the maximum amount into your 3rd pillar, for example. Making voluntary contributions into your pension fund also helps safeguard your required income in retirement.

How do I save on taxes when retiring?

If you optimise your tax burden, you might be able to save thousands on taxes. Anybody about to retire would particularly benefit from making payments into their 3rd pillar and pension fund, as these contributions are tax-deductible. If you then draw your pension gradually, you will save even more on taxes.

Should I reduce my mortgage before retiring?

It may be the case that your bank requires you to pay off a large part of your mortgage so that you continue to meet the affordability criteria on a lower income after retirement. Several years before retiring, you should check whether you have to pay off your mortgage and how to do so. 

If this is a voluntary choice, however, you should not pay off too much, as after retiring, it will be difficult to take out a larger mortgage if you need the money.  

Can I afford to retire early?

Early retirement does not come cheap. You sacrifice your salary, while the pension you receive for the rest of your life will be smaller. For a lot of people, semi-retirement is a good option. If you gradually reduce your working hours in the years before retirement, you can also save on taxes and OASI contributions. No matter what you decide, you should find a good way to bridge the shortfall in income.

How long can I live off my assets?

It is often the case that the pensions you receive from OASI and your pension fund are not enough to maintain your lifestyle after retirement. As such, you should invest your assets in a way that allows you to use them up gradually. Having a solid financial plan will help you organise this properly. It will show exactly how your outgoings, income and assets will change each year after reaching retirement age, together with how much money you will need to set aside to secure your income and which of your assets you will not need to touch for a number of years.

What do same-sex couples need to take into account?

Financial factors can often influence same-sex couples’ decisions on whether they should enter into a registered partnership in old age. Those in registered partnerships are in a far better position when it comes to inheritance law and taxes, for example. On the other hand, they will usually receive a lowerOASI pension than cohabiting partners in retirement.