The amount of your Pension Fund retirement pension depends, on the one hand, on the assets in the pension capital and pension capital supplementary account pension pots and on the other, on the conversion rate at the time of your retirement.
Lower retirement pension upon early retirement
Many people in Switzerland would like to retire early. However, early retirement is costly. If you retire before the age of 65, you will receive your retirement pension at a reduced level, firstly because of the lower conversion rate and secondly because of the lower pension capital. The savings process is ended ahead of time, which means that fewer savings contributions are paid in, and you do not benefit fully from the compound interest effect. Therefore, examine the financial repercussions very closely. If you prefinance the pension capital supplementary account, you can close the financial gaps.
AHV bridging pension
If you take early retirement, you will be able to draw a self-financed AHV bridging pension. You can finance this temporary pension either by making a purchase or by opting to receive a lower retirement pension for the rest of your life.
Retirees's child's pension
In addition to your retirement pension, you will receive a retiree's child's pension if you have children under 18, or children under 25 who are in education or training. The retiree's child's pension amounts to the following percentages of your retirement pension:
- 15% for one child
- 30% for two children
- 45% for three or more children
If you have a child that itself draws a disability pension upon reaching the age of 18, the Pension Fund will pay a support pension, insofar as an entitlement exists at this point in time for:
- Disabled person's child's pension
- Retiree's child's pension
- Orphan's pension.
The support pension ends upon any loss of the disability pension of the child or upon your death.
Lump sum withdrawal
The assets saved in the retirement capital and retirement capital supplementary account pension pots will be paid out as a lump sum on retirement.
On request, you can also withdraw a lump sum from the pension capital and pension capital supplementary account pension pots:
- For assets under CHF 1,029,000: half
- For assets above CHF 1,029,000: 514,500 + total amount above CHF 1,029,000
Pension or lump sum
Would you rather have a lifelong pension? Or have a portion of the retirement assets paid out as a lump sum? You should carefully weigh up the advantages and disadvantages.
|Regular, secure income||Yes. Until death||No. Investment risk and longevity risk|
|Financial flexibility||No. Fixed pension payments||Yes. Lump sum is freely available|
|Financial expertise||No||Yes. Funds must be invested.|
|Survivor coverage||Remaining capital to heirs|
|Taxation||100% as income||One-time taxation on withdrawal at a reduced rate, income and property tax|
Please bear in mind that withdrawal of a lump sum will result in a lower lifetime retirement pension and lower survivors' benefits in the event of your death.
Graduated lump sum withdrawal
Pension capital is taxed at a privileged tax rate. If you make a lump-sum withdrawal from the Pension Fund and also have Pillar 3a accounts, it makes sense to stagger the withdrawal over several years to remain in a lower tax band and pay less tax overall.
Please submit your request for a lump sum withdrawal to the Pension Fund in writing no later than one month before you retire. If you are married or in a registered partnership, we require the written consent of your partner by means of a certified signature. If you are not married, send us a certificate of civil status.