Is your retirement still in the distant future? Then this is the right place for you too. Because the earlier you start to think about your retirement, the better. Even before you have any concrete plans, it can never be wrong to organize your finances with early retirement in mind. After all, this gives you considerable flexibility in planning your future.
You decide when to call it a day and enjoy your retirement years. Most pension funds offer you the flexibility to do this. Each option has consequences as far as the amount of your pension is concerned and it's important that you bear these in mind.
Women are entitled to retirement benefits from age 64; men from age 65. If you don’t come to an alternative agreement with your employer or if your pension fund regulations do not offer you the desired flexibility, you will work up to ordinary retirement age.
The law states that early retirement is possible from age 58. The reduction in your retirement pension is significant. Due to the fall in contribution years and the additional years in which pension is drawn, both your retirement assets and your conversion rate experience a drop. With a purchase of contribution years in your pension fund, you can cushion the impact of this.
Note: When planning your budget, be aware that following early retirement, only the contribution obligation to occupational benefits insurance ceases. You still have to pay AHV/IV contributions until you reach the statutory retirement age.
You can slowly reduce the length of your working week between the ages of 58 and 70. Whether you do this in several steps or in a one-off reduction is up to you. For each stage in the reduction, the conversion rate valid at the time of the change applies. If your regulations permit, you can choose at each stage whether you want a pension, a lump sum, or a combination of the two.
If you reach ordinary retirement age but have no wish to stop working, you can defer your retirement by up to 5 years. A deferral raises the level of your pension. Due to the additional contribution years and the drop in years in which pension is drawn, both your retirement assets and your conversion rate rise.
Condition: Your pension fund regulations contain provisions for retirement deferral.
Whether you wish to have your pension paid as a life-long pension, a one-off lump sum, or as a combination of these two, is a decision with far-reaching consequences. As tempting as a big sum of money can be with all the freedom it offers, a life-long secure income can be the more sensible long-term option.
They are the basis for calculating your benefits as of the retirement date, which therefore becomes the crucial factor in any decision. If you decide on early retirement, for example, you can expect to receive considerably lower benefits because the main portion of your retirement assets accrues in the years closest to retirement.
How your benefits are paid out depends on the pension fund regulations and your personal situation. You have three options:
1. Drawing a pension:
Better protection: Most people opt for a pension from their occupational benefits insurance, which guarantees you a lifelong income. Your accrued assets are converted into a pension on the basis of the conversion rate, which is set by the Federal Council.
2. Lump sum withdrawal:
If permitted by your pension fund regulations, you can have your entire retirement benefits paid out as a one-off lump sum. This gives you additional scope in realizing your plans. You will need to notify your pension fund of your wish. The regulations specify any deadlines. As a rule, lump sum withdrawals must be requested up to 3 years before retirement.
3. Mixed form:
It must always be possible to withdraw 25% of your statutory retirement assets as a lump sum. Many pension funds offer a 50/50 option, which means you can benefit from both protection and flexibility.
Begin analyzing your budget situation after retirement at an early stage so that you still have time to make the right decisions for you. Don’t lose sight of your family and health circumstances, your desired financial freedom and security, and last but not least your tax burden resulting from lump sum payments. For systematic and competent support in making this decision, we advise you to consult an AXA pension advisor.
Anyone who works for a company whose pension fund is managed by AXA can benefit from many advantages. Because the insured employees have access to the myAXA pensions portal. Thanks to this online portal, you - as an employee - can take the planning of your pension provision and the calculation of possible future scenarios into your own hands. Otherwise you have to ask your employer or your HR department for the relevant information.
From the end of 2017 or at the latest at the start of 2018, the insured in an AXA pension fund will benefit from the advantages of the new pensions portal on myAXA. You will receive a letter from AXA with the access data that allows you to register with myAXA with just a few clicks.
If the regulations permit, you can retire at the earliest after reaching age 58.
This depends on the provisions in your pension fund regulations. Please refer to the regulations or ask your pension fund for further details.
The law permits the deferral of retirement for up to 5 years past the ordinary retirement age. However, the provisions in your pension fund regulations are also definitive here. The deferral results in a higher conversion rate and hence a bigger pension.
Pensions are generally paid on a monthly basis. Some pension funds make quarterly, biannual or annual payments, especially if small amounts are involved.
Most pension funds require a paying agent (bank account / postal account) in Switzerland to which they then transfer the pension. How you use the balance on your Swiss account is entirely up to you, irrespective of where you live. Tip: Set up a standing order for transferring your pension from your account in Switzerland to an account abroad, perhaps already in the relevant foreign currency.
All pensions must be declared as income and are taxed; retirement capital, on the other hand, is subject to a reduced rate according to your canton. We recommend that you contact your local tax office.
If you retire early, the retirement capital you accrue will be less than would be the case at regular retirement age. To determine your anticipated pension benefits on the desired retirement date, you can carry out an online calculation or ask your employer to do this.
You will need to contact your pension fund, which will inform you about the procedure, the signatures necessary, and the documents. The regulations also contain the corresponding information. You may have to meet certain deadlines. Be sure to inquire early.