Retirement for women – overview of key regulations

Retirement marks an important turning point in life, especially for women. This is because women often have gaps in their careers due to the responsibilities of raising and caring for children, which has an impact on their retirement provision.

The transition from working life to retirement involves both financial and social changes. In Switzerland, there are specific regulations and special features that women should take into account when planning their retirement. This gives them the best possible start to retirement. 

When will I retire as a woman in Switzerland?

Until 2024, the statutory retirement age for women was 64 years, while men could retire at 65. This means that women are generally fully entitled to Old-Age and Survivors’ Insurance (AHV) from the age of 64. Since 2024 however, the age limit of 65 years has also applied to women – and this with important transitional regulations.

New reforms

The pension system in Switzerland is regularly adjusted to ensure its financial stability and take account of demographic changes. One of the most important recent reforms is the OASI 21 reform, which was passed by Parliament in 2022 and has been in force since 2024. This reform provides for a gradual increase in the retirement age for women to 65 years. The aim of this adjustment is to promote equality between men and women and to stabilize OASI financially.

Which age groups retire at 64?

Women born up to inclusive 1960 can regularly retire at age 64. For women nearing retirement age, the reform is being implemented gradually:

• For those born in 1961, applies: Reference age 64 years plus 3 months
• For the year 1962 the following applies: Reference age 64 years plus 6 months
• For the year 1963 the following applies: Reference age 64 years plus 9 months
• The following applies for the year 1964 and later: Reference age 65

The Transition Generation

These regulations are accompanied by further provisions concerning persons born in 1961 to 1970. There are compensatory measures for women of these age groups, as they may experience disadvantages as a result of later retirement age.

For example, if you withdraw your pension in advance, the reductions would be smaller, and that would be staggered according to your income. If you do not draw your pension early but work until full retirement age, you will receive a supplement. Depending on your income, this amounts to up to CHF 160 per month.

Which year of age has to work until 70?

In Switzerland, there is no law that requires a person to work until the age of 70. However, there are ways to work longer:

1. Voluntary work: Individuals may voluntarily choose to continue working after reaching retirement age. This may be for a variety of reasons, such as financial considerations or the desire to remain active and engaged.
2. Flexible retirement age: In Switzerland, there is the option of flexible retirement arrangements. This means that someone can work until age 70 and then draw an OASI pension.
3. Employer agreements: In some cases, employees and employers can make individual agreements that enable them to continue working beyond the statutory retirement age.

What is the pension for women?

The amount of the OASI pension is determined by various factors:

1. Contribution years The number of years in which OASI contributions were paid. Women who have contributed throughout their entire working life receive a higher pension.
2. Average income: The average annual income during contribution years plays a major role. The higher the average income, the higher the OASI pension.
3. Education credits: Women who have raised children receive additional credits which may increase their pension.
4. Care credits: Credits for caring for dependents may also increase the pension.
5. Spouse's pension: The amount of the surviving spouse’s or surviving dependents’ pension supports the surviving dependents in the event of death and depends on income and other factors such as education credits.

With the Swiss Compensation Office's online pension estimate, insureds can calculate an estimate of their retirement provision online.

OASI early retirement for women under 65

Retirement for women aged 65 and over will change life plans. In Switzerland, however, it is possible to draw your OASI pension early if you do not want to work until you are 65. 

If you would like to start your retirement early, you should consider the possible financial implications beforehand. On the one hand, you can only start your pension from the age of 63 (an exception of 62 applies to the transitional generations).

Secondly, deductions are applied to the OASI pension for each year of retirement before the statutory retirement age. These deductions amount to 6.8% per year of early retirement.

Individual retirement plan (Pillar 3)

Women should consider private pension to strengthen their financial security in retirement. Pillar 3a is a voluntary form of pension provision that was specially developed to supplement state and occupational benefits insurance. A key advantage of Pillar 3a is the tax incentives: Contributions can be deducted from taxable income, resulting in direct tax savings. 

Supplementary benefits

Supplementary benefits (EL) are relevant for women with a low OASI pension in order to secure the minimum standard of living. Women who live in Switzerland and receive an OASI or disability pension are eligible. The amount of extra income is calculated by calculating the difference between recognized expenses (e.g. rental costs, health insurance premiums, and living expenses) and effective income (e.g. OASI pensions and assets).