Glossary
Partial Retirement
Partial retirement refers to the gradual reduction of working hours before the reference age, combined with a proportional receipt of the retirement benefit. Since 1 January 2024, the retirement benefit can be drawn in up to three steps, and the first partial withdrawal must amount to at least 20 percent of the retirement benefit (BVG Art. 13a). The pension fund's regulations may permit more steps and a lower minimum share.
At a glance
- The AHV allows a partial early pension in defined steps (AHVG, AHV 21 reform).
- Many pension funds allow proportional receipt of pension or capital corresponding to the reduction in working hours (depending on the regulations).
- A staggered retirement can reduce the tax progression on capital withdrawals.
Frequently asked questions
Partial Retirement allows a phased withdrawal from working life and spreads capital withdrawals over several years, which can reduce the tax burden. At the same time, employment income and a portion of pension contributions are maintained. Whether and in what steps Partial Retirement is possible depends on the pension fund's regulations and the employer.
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.