How do I take early retirement in Switzerland?
“Retirement” and “early”: two words which, once said in tandem, represent a dream for a lot of us! To make this dream a reality, it’s best to be aware of the facts and get planning all the details as soon as possible.
How old do you have to be to retire?
Both the 1st and 2nd pillar allow for early retirement, but according to different rules.
The 1st pillar (old-age and survivors’ pensions, known as ‘AVS’)
The reference age for taking retirement in Switzerland is 65. If you don’t want to wait until you’re 65 to retire, you can start collecting your AVS pension a full 1 or 2 years earlier, at 63 years of age at the earliest. What’s more, the AVS reform, scheduled to enter into force in 2024, will allow people to start collecting just a part of their pension early, an amount somewhere between 20 and 80%, and to save the rest for later, facilitating a gradual transition into retired life.
The 2nd pillar (occupational pensions, known as ‘LPP’)
It’s possible that the regulations in place for your pension fund allow early retirement with the early payout of benefits, but at the age of 58 at the earliest, as stipulated by Swiss pension law (LPP).
How much does it cost to retire early?
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