Can I afford early retirement?

Whether you can afford early retirement depends on your initial financial position, your circumstances and your requirements. What always applies: Early retirement needs to be well planned, as it leads to additional costs in the first two pension pillars.

2nd pillar: Early withdrawal of the pension fund pension is possible from the age of 58, but it does reduce the amount of the pension. Depending on the pension fund regulations, a decrease of 5 to 8 percent per early withdrawal year must be expected. Since the savings period is shortened by up to seven years, the pension is significantly lower. The amount of your pension benefits in the event of early retirement is set out in your annual pension certificate. To compensate for the drop, you can make a voluntary purchase into the pension fund.

1st pillar: With pillar 1, early retirement is possible from two years before retirement. For every year that you retire early, your AHV pension decreases by 6.8 percent. In addition to this, you must continue to make AHV payments during this time, as the obligation to contribute only ends at the regular retirement age.