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Glossary

Partial Retirement

Partial Retirement refers to the gradual reduction of working hours before full retirement, combined with proportional receipt of AHV and pension fund benefits. It allows a phased transition into retirement and can be structured advantageously from a tax perspective, as capital withdrawals are staggered.

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

Vorsorge & Pensionierung

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