The Four Retirement Models in the
Whether retiring early at 58 or deferring retirement until 70, and whether staggered or upon reaching the AHV age: An individual withdrawal of employee benefits insurance is possible under the law. The rules of individual pension funds must be consulted. Read on for a comparison of the four different 2nd pillar retirement models.
1. Normal retirement
Currently, the retirement age is 64 years for women, and 65 for men. You can receive your retirement benefits as a pension, lump sum, or a combination of the two. When drawing a pension, the respective applicable conversion rate applies.
2. Early retirement
The benefits from the 2nd pillar can be drawn at age 58 at the earliest. Since the retirement assets are not yet fully saved and the payout period is extended, the benefits will be reduced accordingly. Anyone with sufficient savings can compensate for the reductions with voluntary purchases. Those in possession of a Pillar 3a can use these funds for purchases in the 2nd pillar. Note: The obligation to pay contributions for the AHV remains intact.
3. Staggered retirement
Partially working, partially already retired: This gradual transition into retirement is offered by an increasing number of pension funds. It involves the gradual reduction of the level of employment in stages. Lower salary is compensated for by means of a partial withdrawal of retirement benefits as a pension or as a lump sum. If provided for by the regulations, gradual retirement is also possible after the normal retirement age has been reached.
4. Deferred retirement
Those who decide to remain in the workforce longer than required by law may be able to receive a higher conversion rate for their retirement assets. To the extent provided under the regulations, the 2nd pillar is continued with or without retirement credits. According to law, employee benefits insurance can be continued until the completion of the 70th year of life.
Pension fund withdrawals at ages between 58 and 70
Under the Swiss Federal Occupational Pensions Act (BVG), the insured must draw from their 2nd pillar between the ages of 58 and 70. The degree of flexibility with which insured persons can plan their transition from professional life to retirement depends on the individual pension fund and the corresponding regulations.