Preparing for retirement means measuring a gap
In Switzerland, your retirement income comes mainly from the AVS, the LPP pension fund and your private pension. The first two pillars are not always enough to maintain the desired standard of living, especially in the event of part-time work, high income, divorce, career interruption or self-employment.
The right question is not only “how much will I receive?”, but “how much will I miss each month to live the way I want?”.
The basic rules in 2026
- Reference age: 65 years for men and progressively 65 years for women according to AVS 21.
- Flexible AVS: anticipation or postponement possible, including partially, according to AVS rules.
- BVG: the pension fund can provide early retirement from age 58 and a deferral until age 70 if you continue to work.
- Pillar 3a: withdrawal possible in principle from five years before the reference age, with the possibility of contributing up to five years later if you are still gainfully employed.
- Taxation: LPP, vested benefits and 3a capital withdrawals are taxed separately from income, but withdrawals in the same year can be combined for tax purposes.
Early or gradual retirement
Leaving earlier is possible, but often costs more than you imagine: fewer years of contributions, less interest, LPP conversion rate sometimes reduced and AVS pension reduced in the event of anticipation. The period between the last salary and the full start of pensions must be financed.
Gradual retirement can be a gentler alternative: reduce your activity rate, anticipate only part of the AVS, use part of the LPP or mobilize 3a in a planned manner. The possibilities depend on the rules of your fund and your tax situation.
Levers to improve your retirement
- Request an AVS estimate: useful for detecting missing contribution years.
- Read the LPP certificate: projected annuity, capital, death-disability benefits, conversion rate and surrender potential.
- Maximize pillar 3a: in 2026, up to CHF 7,258 with LPP or 20% of net income up to CHF 36,288 without LPP.
- BVG redemption: can fill gaps and reduce taxes, with a three-year tax hold before a capital withdrawal.
- Savings 3b: useful for maintaining flexibility, financing early retirement or organizing a transfer.
- Income protection: check death, disability and incapacity to earn before retirement.
Annuity or capital: a choice to prepare
The BVG annuity provides income for life and transfers the longevity risk to the pension fund. Capital gives more freedom, but requires you to manage your own investment, withdrawals and the risk of living longer than expected.
Many people choose a combination. The correct distribution depends on your fixed expenses, your health, your spouse, your heirs, your risk tolerance and your financial discipline.
Optimize withdrawals and taxes
Capital withdrawals are taxed separately, but progressivity exists. Exiting LPP, vested benefits and several 3a in the same year can cost much more than staggered withdrawals. This is why it often makes sense to open several 3a accounts and coordinate their closing over several years.
A LPP redemption must also be planned: if a capital withdrawal occurs within the following three years, the tax advantage may be called into question. Better to simulate before pouring.
Common errors
- Wait until age 64 to discover an AVS or LPP gap.
- Do not take into account taxes, health premiums and housing costs after retirement.
- Make a LPP redemption just before a capital withdrawal.
- Withdraw all pension assets in the same year.
- Choose LPP capital without an investment and disbursement plan.
- Forgetting the protection of your spouse, partner or children in the event of death before retirement.
Our support
Finwise builds a retirement projection with you: AVS income, LPP, 3a, 3b, taxation, monthly gap, starting age, redemption strategy and withdrawal schedule. You get a readable plan for deciding when to leave, how much to secure and which products to keep or adapt.