Planning your retirement: the complete guide

Reference age and AHV 21: when ordinary retirement starts

Since the AHV 21 reform, a uniform reference age of 65 applies to men and women. For women it is being raised in steps:

From 2028 the reference age is 65 for everyone. Men: unchanged at 65.

Drawing AHV early: from 63, to the month, with a reduction

The AHV retirement pension can be drawn at the earliest from the month after your 63rd birthday — since AHV 21 to the exact month, no longer only in whole years. Women of the transition generation (born 1961–1969) can still draw from 62.

Early withdrawal reduces the pension for life:

• During early withdrawal, AHV contributions remain due until the reference age.
• Whether early withdrawal pays off depends on factors such as life expectancy, taxes, possible supplementary benefits and continued work — there is no one-size-fits-all answer.
• Lower, income-dependent reduction rates apply to the transition generation (see its own section).

NOTE, subject to change: the reduction rates will be adjusted to increased life expectancy — in 2027 at the earliest; the new rates have not yet been set. As of 2026, 6.8% per year of early withdrawal applies.

Deferring AHV: up to five years, with a lifelong supplement

The AHV pension can be deferred by at least one and at most five years. After the first year, it can be called up monthly — no fixed duration has to be chosen in advance. The deferral declaration must be made no later than one year after reaching the reference age.

Deferral increases the pension for life:

• The supplement is a fixed amount and can push the pension above the maximum pension.
• Whether deferral pays off depends on the same factors as early withdrawal (life expectancy, taxes, work situation) — again, there is no blanket answer.

NOTE, subject to change: the supplement rates will also be adjusted to life expectancy in 2027 at the earliest; as of 2026, 5.2 to 31.5% applies.

Partial AHV pension: drawing 20 to 80 percent (new with AHV 21)

Since AHV 21, the whole pension no longer has to be drawn at once: a share between 20 and 80 percent of the retirement pension can be drawn early or deferred — in francs or whole percentage points, from any month.

The switching rules are deliberately tight:

• The early-withdrawal share can be increased exactly ONCE during the withdrawal (beyond that, the full pension is paid); lowering it is excluded.
• For deferral, the deferred share can be reduced ONCE; switching back to full deferral is excluded.
• Early withdrawal and deferral can be combined; in the combination the percentage can only be changed once between 63 and 70.

Women of the transition generation (born 1961–1969): the pension supplement

For women born 1961 to 1969, AHV 21 provides compensation measures — as an either/or: the lifelong pension supplement, or early withdrawal from 62 at reduced reduction rates (next section).

The pension supplement is only paid without early withdrawal. The base supplement is 160, 100 or 50 francs per month depending on average annual income and is scaled by year of birth:

The supplement is not capped, not indexed to inflation and does not reduce supplementary benefits.

Transition generation: early withdrawal from 62 at reduced reduction rates

The alternative to the supplement is early withdrawal from 62 at reduced, income-dependent reduction rates — anyone who draws early forfeits the supplement:

With a low income, up to one year of early withdrawal is possible without any reduction. Which of the two variants yields more pension in a specific situation depends on income, year of birth and the planned withdrawal date.

The rules for the transition cohorts are complex — we are happy to look at both variants with you, with no obligation.

Pension fund: annuity, lump sum or a mix

The pension fund's retirement benefit is paid as an annuity as a rule. By law, every insured person can demand that at least one quarter of the mandatory retirement savings be paid out as capital; many funds' rules go further, up to a full lump-sum withdrawal — and thus also allow mixed forms.

The framework that applies to everyone:

• Married persons and registered partners: the lump-sum withdrawal requires the WRITTEN consent of the spouse or partner (Art. 37a BVG).
• Registration deadline: purely a matter of the fund's rules — there is no statutory deadline. The deadline is best clarified early with your own fund; once the deadline has passed, the decision is generally irrevocable.
• After a pension-fund buy-in, the resulting benefits may not be drawn as capital for three years (Art. 79b para. 3 BVG).
• The minimum conversion rate in the mandatory part is 6.8% (the reduction voted on in 2024 was rejected); rates for supra-mandatory savings are set freely by the fund rules.

Which route fits your situation depends on many personal factors — this decision is generally irreversible and belongs in a personal conversation. We are happy to take the time, with no obligation.

Phased retirement and staggered withdrawal

Since AHV 21, a step-by-step exit has been regulated by law: the pension-fund retirement benefit can be drawn in stages — the lump sum in at most three steps (all withdrawals within one calendar year count as one step). The first partial withdrawal must amount to at least 20 percent of the retirement benefit; fund rules may allow less.

For early partial withdrawal, a link to salary applies: the share of the benefit drawn early may not exceed the share of the salary reduction — phased retirement therefore requires a genuine reduction in workload.

Pillar 3a can be staggered too: with several accounts across several tax years. Together with staggered pension-fund lump sums, this can break the progression of the lump-sum withdrawal tax — whether and how is individual and depends on the canton.

In depth: staggered pillar-3a withdrawal and the lump-sum withdrawal tax →

Early retirement: what leaving early costs

Pension-fund rules may allow retirement from the completed 58th year at the earliest. The AHV, however, only follows from 63 (transition generation: 62) — in between lies a gap that has to be covered from your own means, pillar 3a or a bridging pension under the fund rules.

Three cost items belong in every early-retirement calculation:

• AHV contributions remain due until the reference age — even without earned income (contributions as a non-employed person).
• The pension-fund annuity is lower: fewer contribution years, more pension years, and a lower conversion rate under the rules for earlier retirement.
• Any early AHV withdrawal reduces the AHV pension for life (see above).

Budget and taxes in retirement

Retirement income is built from the AHV pension, the pension-fund annuity and/or drawing down capital, plus private provision (3a/3b) and other assets. For planning, the simple comparison counts: expected income components against the spending budget — including items that change (health insurance, housing, travel).

For taxes, the basic rule: AHV and pension-fund annuities are fully taxable as income. Lump-sum benefits from pension provision are taxed separately from other income — federally at one fifth of the ordinary rates, and in the cantons at their own reduced rates.

Private provision also belongs in the withdrawal plan — the role of pillars 3a and 3b is covered in our dedicated comparison guide.

This page deliberately states no specific tax rates — they differ by canton and change; the individual calculation belongs with a tax adviser.

In depth: pillar 3a or 3b — the differences at a glance →