Retirement
Retirement is a step that needs to be prepared. It is important to plan and to find out in advance about which benefits you will be entitled to and the steps to take.
Know about your pension
The Swiss old-age pension system is based on three pillars. Each of them pays different benefits to their insureds. It is important to gain an overview of your own pension plan so that you know what your retirement benefits will be. The best thing is to do this in good time so as to avoid gaps or shortfalls.
1st pillar (OASI)
If you have contributed to the OASI system, you will be entitled to an old-age pension, at the earliest from age 63 and at the latest from age 70. The reference age – the age at which you can retire without any deduction from or increase to your old-age pension – is currently 65.
Someone who retires early will draw a lower pension; someone who defers their retirement will draw a higher one.
In order to assess the level of your future OASI pension, you can ask your compensation fund for a free calculation.
The process is explained here:
- in german: Rentenvorausberechnung
- in french: Calcul anticipé de la rente
- in italian: Calcolo anticipato della rendita
2nd pillar (pension fund)
If you have paid contributions into a pension fund, you will be entitled to benefits from this institution: in the form of a pension, a lump sum or a combination of both.
The different benefits available under Pillar 2: Occupational benefit funds - benefits
The amount of your retirement assets (or capital) and an estimate of your future retirement pension are shown on your pension certificate. This is sent to you each year by your pension fund.
If you have any questions about your pension certificate, please contact your pension fund. If you are employed, this is the pension fund of your employer.
If you do not remember which pension fund you belonged to or if you wish to verify if you have forgotten assets, please contact the 2nd Pillar Central Office. It will conduct a free search for you of your 2nd pillar assets: Enquiry to the 2nd Pillar Central Office | LOB Guarantee Fund
3rd pillar
The 3rd pillar is optional and individual. Contributions may be deducted from taxes. Conversely, the benefits are taxed when they are drawn. It may be wise to have several 3a accounts so as to stagger the withdrawals over several years.
For more general information about the 3rd pillar, see: The third pillar.
You can obtain information about your policy or individual account from the institution with which you have a 3rd pillar.
Parameters to bear in mind
Your civil status, your nationality or domicile play a role in your pension provision, both when you make contributions as well as when you calculate and receive the benefits to which you are entitled.
You can find information on the following pages, according to your situation:
- Widows, widowers and orphans
- Divorce
- Couples’ pensions
- Pension for a child in your care
- Situations involving foreign countries/citizens
Procedures and timelines
In order to receive your old-age benefits you must take steps several months in advance, regardless of whether you will retire at age 65, beforehand or afterwards. Benefits are not paid out automatically.
1st pillar
We recommend submitting your request for your OASI pension three or four months before you plan to retire. The compensation fund has to gather all the necessary documents and calculate the amount of your pension, which can take some time.
All the necessary steps are set out in this document available from the OASI/DI Information Centre:
OASI Old-age Pensions and Helplessness Allowances
2nd pillar
You should consider in good time the different options available so to assess which best suits your individual situation, e.g. your state of health or your future plans. You can withdraw your 2nd pillar assets either as a lump sum or in the form of a pension. You must submit your request for a lump-sum withdrawal within the deadline specified by your pension fund. Certain pension funds only offer the option of a partial lump-sum withdrawal. A combination of both options is also possible. Once you have made your choice it cannot be changed.
Contact your pension fund a few months before you retire. If you do not know the name of your pension fund, ask your employer.
3rd pillar
Contact your private pension fund (insurance company/bank) a few months before you retire to obtain clear information on the modalities of withdrawing capital and the amount that you have accumulated in your 3a account.
The 3rd pillar 3a a 3b in Switzerland
Important
If you are employed, you must terminate your employment relationship in accordance with the procedures defined in your employment contract.
Do not forget to take out accident insurance with your health insurer. For the duration of your employment relationship, this was handled by your employer.
Once you have retired, you will have to pay taxes on the basis of your new income (pension or lump-sum payments):Retirement income in Switzerland
If, after retiring, you encounter financial difficulties in covering your basic needs, you may be entitled to supplementary benefits.
More information: Supplementary benefits (SB) - overview
Contact
If you have questions about your personal situation.
1st pillar (OASI)
Contact the compensation fund responsible for you. This is usually:
- your employer’s OASI compensation office if you are employed
- the OASI compensation office to which you contribute, if you are self-employed or unemployed
- the OASI compensation office in your canton of residence, in other cases.
List of OASI compensation offices: Contacts | OASI/DI Information Centre
Occupational benefits / 2nd pillar
Contact your pension fund or your employer
Individual benefits / 3rd pillar
Contact the institution that manages your 3a or 3b account/policy