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Glossary

Early Retirement

Early Retirement refers to retirement before the ordinary reference age under the AHV. Those who stop working earlier draw on a smaller retirement account, receive an actuarially reduced pension fund pension, and forgo contribution and accumulation time. The longer retirement phase makes financial planning more demanding.

At a glance

01

The AHV pension may be drawn up to two years early; early withdrawal results in a permanent, lifelong reduction of the pension (AHVG Art. 40).

02

The BVG regulations of the pension fund specify from what age Early Retirement is possible (at the earliest from age 58 under BVG Art. 13 para. 2).

03

During the period between early retirement and the AHV reference age, no AHV pension is paid; contribution gaps must be compensated as a non-employed person.

Frequently asked questions

Reductions arise simultaneously on several levels: accumulated capital is smaller (fewer contribution years), the retirement phase is longer, and the Conversion Rate is lower than at ordinary retirement. In addition, the AHV pension is permanently reduced if drawn early. Careful liquidity planning and simulation of different scenarios are therefore indispensable.

Part of the topic

Vorsorge & Pensionierung

Sources: Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)