Retirement planning. Helvetia supports you on your path to retirement.
What is ordinary retirement age in Switzerland?
In a referendum held on 25 September 2022, Swiss voters approved the OASI 21 reform, resulting in the following changes regarding ordinary retirement age:
The term “reference age” is to be introduced. It replaces the terms “pensionable age” and “retirement age” and applies to both OASI and the pension funds.
From 1 January 2024 onwards, a uniform reference age of 65 will apply to both men and women (previously 65 for men and 64 for women).
As the current retirement age for women is lower, it will be adjusted upward annually in three-month steps till it reaches the new reference age. Women born in 1960 are not affected by the increase. Women born in or after 1964 will reach ordinary retirement age at reference age 65.
How much money do you need as a retiree?
That differs from person to person and depends on your needs and plans. When you retire, you no longer have certain expenses, such as meals out while working or the cost of commuting to work. On the other hand, you may want to make use of your new leisure time by travelling more or pursuing a hobby. That can push up your expenses.
Why is retirement planning worth your while?
If you pay into the OASI scheme without interruption and are also insured with a pension fund via your employer, you can expect to receive pension income equal to about 60% of your final income as an employee. But that figure can be appreciably lower if you earned a high salary, took longer breaks from work or did not pay all your contributions. So, it is worth answering the following questions at an early stage:
- Will I have enough retirement income?
- Can I afford to retire early?
- How can I save on taxes?
- Should I repay my mortgage?
- Can I continue to finance my home after retirement?
- Should I draw my retirement assets as a pension or a lump sum?
What others wanted to know
Our customer advisors can provide answers to selected FAQs. Just tell us what you want to know. We will be happy to help you.
Stefan F. (59), Sursee
Can I afford to retire early?
A personalized retirement plan can certainly answer all your questions, at least as far as the financial side is concerned. After all, retiring early has consequences. For example, your OASI and LOB pensions are reduced if you begin drawing them early. You have to take that into account when planning your budget.
By the same token, you can retire early but postpone drawing your OASI pension and your pension fund benefits, choosing instead to apply for these once you reach ordinary retirement age. If you decide to do that, however, you will need to have sufficient funds to bridge the resulting gap.
It is also important to note that, even if you retire early, you will need to keep paying OASI contributions until you reach ordinary retirement age. Only then does the obligation to pay contributions cease.
Mats H. (64), Chur
I would like to continue working after retirement. What do I need to consider?
If you would like to continue working after reaching ordinary OASI retirement age, you can put off drawing your OASI pension and LOB pension until a later date as well. Depending on the actual duration of the postponement, that will result in a lasting increase in both pensions.
As long as you are working and earning income that is subject to OASI contributions, you can continue to make annual payments into pillar 3a after reaching OASI retirement age and thus continue to save tax. But 70 is the cut-off point. Once you reach that age, you can no longer make any pillar-3a payments.
Svenja F. (62), Wettingen
What aspects do I need to consider in the event of partial retirement?
Up till now, neither OASI nor the occupational benefit system had any statutory provisions for partial retirement. But many pension funds have already introduced partial retirement on a voluntary basis. Now, under the OASI 21 reform, an insured person will be able to draw partial benefits early or defer them to a later date.
If partial retirement is something that appeals to you, make sure you talk to your pension fund and relevant OASI compensation fund to discuss your options as well as any conditions that apply.
If you shift from full-time to part-time, don’t forget about your accident insurance. Talk with your employer to clarify the extent of your coverage.
Stefan F. (59), Sursee
Can I afford to retire early?
A personalized retirement plan can certainly answer all your questions, at least as far as the financial side is concerned. After all, retiring early has consequences. For example, your OASI and LOB pensions are reduced if you begin drawing them early. You have to take that into account when planning your budget.
By the same token, you can retire early but postpone drawing your OASI pension and your pension fund benefits, choosing instead to apply for these once you reach ordinary retirement age. If you decide to do that, however, you will need to have sufficient funds to bridge the resulting gap.
It is also important to note that, even if you retire early, you will need to keep paying OASI contributions until you reach ordinary retirement age. Only then does the obligation to pay contributions cease.
Mats H. (64), Chur
I would like to continue working after retirement. What do I need to consider?
If you would like to continue working after reaching ordinary OASI retirement age, you can put off drawing your OASI pension and LOB pension until a later date as well. Depending on the actual duration of the postponement, that will result in a lasting increase in both pensions.
As long as you are working and earning income that is subject to OASI contributions, you can continue to make annual payments into pillar 3a after reaching OASI retirement age and thus continue to save tax. But 70 is the cut-off point. Once you reach that age, you can no longer make any pillar-3a payments.
Svenja F. (62), Wettingen
What aspects do I need to consider in the event of partial retirement?
Up till now, neither OASI nor the occupational benefit system had any statutory provisions for partial retirement. But many pension funds have already introduced partial retirement on a voluntary basis. Now, under the OASI 21 reform, an insured person will be able to draw partial benefits early or defer them to a later date.
If partial retirement is something that appeals to you, make sure you talk to your pension fund and relevant OASI compensation fund to discuss your options as well as any conditions that apply.
If you shift from full-time to part-time, don’t forget about your accident insurance. Talk with your employer to clarify the extent of your coverage.
