The advantages of the 3rd pillar
What to bear in mind when planning your early retirement
‘Early’ and ‘retirement’: if these two words are music to your ears, it is important to be well informed about the conditions and consequences of taking early retirement.
If you take early retirement, you will receive a reduced pension until you reach the standard retirement age. It is important to make up for this with a 3rd pillar.
Taking early retirement does not mean that you will no longer have to contribute towards the basic state pension. You will need to factor the annual cost of this into your pre-retirement budget.
By starting your retirement early, you will miss out on the key years in which your LPP capital will grow. An employer’s contributions towards this are higher during the last 10 years before retirement.
Calculate your income on retirement
Retirees need an income of around 80% of their final salary if they are to maintain the same standard of living. However, their minimum pension income will only account for about 60% * of their final salary.
In the calculator below we will use this figure, as well as your desired income, as a basis to estimate how much more income you would need to achieve your desired level for retirement. For a detailed calculation that reflects your personal situation, we invite you to meet one of our advisors in-branch.
Use the calculator below to see how much more income you would need:
* The minimum income from the basic state pension depends on various factors, including your salary and your number of years of employment in Switzerland; the minimum pension from your 2nd pillar depends on your level of salary and the coverage provided by your pension fund.