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
- 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).
- The pension fund's regulations determine the age at which Early Retirement is possible. They may not set it below age 58 (BVV2 Art. 1i).
- Until the reference age, early retirees remain liable for AHV contributions and pay them as non-employed persons. The amount depends on assets and pension income (AHVV Art. 28).
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
Pension & Retirement
Sources: Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)
This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.