The 3 pillars of Swiss retirement
The Swiss pension system is based on three complementary pillars. The 1st pillar (AHV/AVS) is the state old-age pension, mandatory for all workers who have resided or worked in Switzerland. The 2nd pillar (BVG / occupational pension) corresponds to occupational retirement provision, mandatory for employees whose annual income exceeds CHF 22,680 (threshold for 2026). Finally, the 3rd pillar covers individual private savings, with Pillar 3a (tied, fiscally advantageous) and Pillar 3b (voluntary).
None of these payments are automatic. You have to take all the necessary steps yourself, within specific deadlines.
Recovering your AHV pension (1st pillar)
Who can benefit from AHV?
Anyone who has contributed to the AVS in Switzerland is entitled to an AVS old-age pension, provided they have at least one full year of contributions. The reference age is set at 65 for both men and women (following the AVS 21 reform). In 2026, the monthly pension ranges from CHF 1,260 to CHF 2,520 depending on the average contributory income (according to scale 44).
An early retirement is possible up to 2 years before this age (from 63), but it results in a permanent and definitive reduction of the pension: 3.4% for 6 months early, 6.8% for 1 year, 10.2% for 1.5 years, and up to 13.6% for 2 years. Conversely, deferring your pension until 70 allows you to increase the amount.
How do I apply?
The application is not automatic and must be submitted 3 to 6 months before your retirement date.
If you reside in Switzerland, contact the compensation office to which you made your last contributions. If you live abroad, the Swiss Compensation Office in Geneva centralizes and processes the applications.
Permanent departure from Switzerland: reimbursement of AHV contributions
In certain cases, it is possible to refund the contributions paid to the AVS instead of receiving a future pension. This option applies to people who are not Swiss nationals and who permanently move to a non-EU/EFTA country or to a country without a social security agreement with Switzerland, and who are not entitled to an exportable pension.
The employee and employer contributions (approximately 8.4% to 8.7% of gross salary) are refunded, without interest. Contributions to the IV, APG, and unemployment insurance are not included. The refund is final and irrevocable: it terminates all future rights to AVS and IV benefits for the periods concerned.
The application must be submitted to the Swiss Compensation Office in Geneva, ideally at the time of departure, along with a certificate of permanent departure. The right expires 5 years after leaving.
Calculate my AHV retirement benefits
- You can request an estimate of your AHV pension.
- Estimate the amount of your OASI pension online
Recovering your 2nd pillar (LPP/BVG)
When can you recover your 2nd pillar?
Most pension funds allow a withdrawal from age 58 as part of early retirement, with a reduced conversion rate. The regular withdrawal occurs at 65.
Annuity or lump sum: an irrevocable choice
At retirement, you can receive your 2nd pillar pension as an annuity or a lump sum, and this choice is final.
The life annuity guarantees a lifelong income, regardless of your longevity or market performance. With a capital of CHF 400,000 and the legal conversion rate of 6.8% (mandatory portion), you would receive approximately CHF 27,200 per year.
A lump-sum withdrawal offers more freedom: repaying a mortgage, investing, or planning an inheritance. In return, you alone bear the responsibility for the sustainability of your savings over 25 to 30 years.
According to the law, you can withdraw at least 1/4 of the mandatory pension capital as a lump sum. Some funds allow a full withdrawal. Please consult your plan regulations to find out.
Departure to a non-EU/EFTA country
In the event of a permanent move to a country outside the European Union or the European Economic Area, it is possible to withdraw the entire LPP pension capital (mandatory and supplementary portions) as a lump sum.
Departure to an EU or EFTA country
Contact your pension fund at least 6 months to 1 year in advance. Beyond this period, the right to a lump-sum payment may be lost. Written consent from your spouse is mandatory.
How do I apply?
Contact your pension fund at least 6 months to 1 year in advance. After this period, the right to a lump-sum payment may be lost. The spouse's written consent is required.
What about vested benefits?
If you left an employer without retiring immediately, your capital was likely transferred to a vested benefits account or policy. These assets can be withdrawn from age 58. If you are unsure whether such accounts exist, you can conduct a free search using our form.
If you have not yet reached 58 and are no longer working in Switzerland, your LPP assets must generally be transferred to a vested benefits account or deposit. In any case, it is essential to compare vested benefits accounts to make the right choice.
Recovering your 3rd pillar
Pillar 3a (restricted pension plan)
Pillar 3a assets can be withdrawn upon permanent departure from Switzerland. The withdrawal is made as a lump sum and is taxed at a preferential rate.
To limit the tax burden, it is advisable to spread withdrawals over several years by opening several separate 3a accounts (this choice can only be made when the account is opened). The canton in which the pension fund is domiciled will be decisive for calculating tax.
Pillar 3b (unrestricted pension plan)
Pillar 3b is not subject to strict age conditions. However, an early withdrawal may incur penalties depending on the contract. When the contract meets the legal pension requirements, the capital paid at maturity is income tax-exempt.
Special case: French border workers
For AHV pensions
Under the France-Switzerland bilateral agreements, cross-border workers residing in France must submit their application to the CARSAT of their region. It will issue a European form E202, which is automatically sent to the Swiss Compensation Office. The periods worked on both sides of the border are taken into account, and each country pays the portion of the pension corresponding to it.
For the 2nd pillar: anticipating cumulative taxation
- TheSwiss withholding taxvaries by canton
- French taxation happens either a flat-rate withholding tax of 7.5 % after an allowance of 10 % (irrevocable option), or integration into the progressive scale with the quotient mechanism.
- Social security contributions amount to 9 % for most taxpayers
- A possible CNTFS/CMU contribution if you are affiliated to the CMU, the capital withdrawn is included in the basis for calculating contributions, with a 2-year time-lag impact
On a capital sum of CHF 200,000, the total tax and social security burden can thus reach CHF 30,000 to 35,000, depending on the situation. This accumulation is often underestimated: a thourough planning is essential.
Plan your retirement with Invexa
Frequently asked questions
No. Whether for OASI, Pillar 2 or Pillar 3, you must make an active application within the allotted time. If you fail to do so, no payment will be made.
Yes, under bilateral agreements, the rights acquired in each country are calculated and paid out separately. You will receive a pension from each scheme in proportion to the years you have contributed.
From age 58, if your pension fund regulations so provide. However, each year of early retirement reduces the conversion rate, and therefore the amount of your pension.
If you have any doubts about the existence of forgotten BVG assets or vested benefits accounts, you can carry out a free search via Invexa.
As early as possible. From age 40, a comprehensive pension review is recommended to identify gaps and plan buy-ins to the pension fund. From age 50, it is time to simulate the exact amounts and study tax-efficient withdrawal strategies.
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