Retirement age in Switzerland
Since 2025 (AVS 21 reform):
- Men: 65 (unchanged)
- Women: gradual alignment to 65 (2025–2028 transition)
- LPP reference age: 65 for all
Early retirement is possible from 58–63 depending on your LPP and AVS, with financial reductions.
Retirement review: 5 years before
Step 1: know your pensions
- AVS: request a provisional pension calculation on ahv-iv.ch (free)
- LPP: your fund sends you a yearly certificate with projected pension and capital at 65
- Pillar 3: available capital + projected interest/returns to retirement
Step 2: project expenses
- Housing: owner or tenant, fixed costs
- Health: LAMal + complementary (estimate 3–5% annual rise)
- Leisure and travel: desired budget
- Family: help to children/grandchildren?
Step 3: identify gaps
- Gap = difference between retirement income and desired expenses
- If significant: corrective actions (LPP buybacks, increased 3a, extended activity)
Normal retirement (65)
Default scenario:
- Full AVS (per years contributed)
- LPP at legal conversion rate (~6.8% but declining)
- Pillar 3 available
- Steps 3–6 months before 65th birthday:
- AVS application
- LPP pension/capital decision
- Progressive pillar 3 withdrawal
Early retirement
Feasibility
- AVS: from 63 (62 for women born before 1964)
- LPP: per fund, often from 58–60
- Pillar 3: possible 5 years before AVS, i.e. 60
Financial impact
- AVS: −6.8% per year early (lifetime)
- LPP: capital has less time to grow, often less favourable conversion
- Pillar 3: capital partly available, can fill gap
- AVS bridge: some LPP funds provide a bridge to 65 (pension advance)
Example
Retirement at 60 instead of 65:
- AVS lost 5 yrs + AVS permanently reduced
- LPP: smaller capital (5 yrs less) + less favourable conversion
- Estimated cost: 10–25% of retirement income for life
When to consider it
- Sufficient capital accumulated
- Health that doesn't allow work
- Life choice (travel, personal project)
- Possible combination with light activity
Deferred retirement
Advantages
- AVS: +5.2% to +31.5% depending on deferred months (up to 70)
- LPP: capital continues to grow and conversion rate can be better
- Savings: keep earning a salary and save
- Social link maintained
Limits
- Maximum 5 years deferral for AVS (70)
- For LPP: per fund, usually 70 max
- Full or part-time work to negotiate with employer
Retirement taxation
Pension
- AVS, LPP, AI: taxed as ordinary income
- Generally lower than during activity (lost employment income)
LPP capital
- Preferential taxation: separate rate, ~5–15% by canton and amount
- Avoids ordinary bracket progression
- Spread over multiple years if possible
Pillar 3 capital
- Same preferential rate
- Stagger withdrawals over several tax years to optimise (up to 5 yrs before AVS)
Wealth
- Wealth tax continues post-retirement
- Optimise via planned gifts, foundations, partial transmissions
Practical steps
5 years before
- Global retirement review with adviser
- Check AVS contributions (gaps)
- Action plan to fill gaps (LPP buybacks, max 3a)
3 years before
- LPP pension/capital decision
- Real estate review (sell, keep, life annuity?)
- Pillar 3 withdrawal strategy
6 months before
- AVS pension application
- LPP choice confirmation
- Employer notification
At retirement
- Notification to commune and compensation fund
- Update insurance (LAMal, complementary)
- Update will
Tips
- Plan 5–10 years ahead for retirement
- Maximise 3a and consider LPP buybacks from 50
- Stagger capital withdrawals over years for tax efficiency
- Professional advice: a specialist adviser can save tens of thousands
- Think about your post-retirement life project: without a project, the transition can be psychologically tough
