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Maybe you’re not dreaming of travelling the world, but simply hoping you won’t have to hold out until 65. Instead, you want to do what fulfils you again – perhaps return to your music, run a small farm, spend time with your grandchildren, or finally start a passion project that doesn’t come with a title or bonus.
If you’ve been thinking more and more about early retirement, you’re not alone. More and more people in Switzerland are asking themselves: “Can I afford to retire early – and if so, how?”
The answer is: yes, early retirement is possible. But only if you plan carefully. This article shows you what you need to know.
Table of Contents
- When is early retirement possible in Switzerland?
- How much does it cost to retire five years early?
- How much wealth do I need for early retirement?
- What if I just want to reduce my workload?
- How do I prepare financially for early retirement?
- What are the tax implications of early retirement in Switzerland?
- How can I invest my capital wisely?
- How can Alpian support your early retirement?
- Conclusion: early retirement is possible – but only with the right plan
When is early retirement possible in Switzerland?
The legal foundations are clearly defined – but the path is highly individual.
You can start drawing your AHV pension up to two years before the reference age – so from 63 (or from 62 or even 61 for women, depending on birth year).
As for the pension fund (2nd pillar), early withdrawal is possible from the age of 58, provided your pension scheme allows it.
Since 2024, it’s also possible to stagger the start of your AHV pension: for example, you could draw 20% first and access the rest later. This model allows greater flexibility.
But beware: the earlier you draw your benefits, the lower they will be – for life.
How much does it cost to retire five years early?
You may be thinking, “I’ve saved quite a bit – that should be enough.” But let’s be honest: the financial consequences are often underestimated.
An example: if you want to retire at 60 instead of 65, you need to cover about CHF 447’000 yourself – to make up for lost income, lower pensions, and continued AHV contributions. That’s nearly half a house or five years’ salary, depending on your income.
Here’s how the reductions add up:
AHV: –6.8% per early year, so –13.6% for two years
Pension fund: lower capital and a reduced conversion rate: –10% to –15% per year
And these reductions aren’t temporary – they stay with you for life.
How much wealth do I need for early retirement?
You may be asking yourself: “Is what I’ve saved enough, or do I need more?” Here’s a rough rule of thumb: you should have saved 20 to 25 times your expected annual expenses.
An example: if you want to spend CHF 80’000 per year, you’ll need between CHF 1.6 to 2 million in capital.
That may sound like a lot – and it is. But it reflects reality: you’re not just funding five years, but potentially up to 30 years without a salary.
Key questions to ask yourself:
How will my expenses change in retirement?
What if inflation or health insurance premiums increase?
Will my children go back into education, or will my parents need care?
What if I just want to reduce my workload?
In that case, consider semi-retirement. For many, it’s the ideal compromise between stepping away and staying secure.
How it works: you reduce your workload – say from 100% to 60% – and draw partial pension or capital benefits. You still earn some income, pay AHV contributions, and keep a routine. But you also gain more time for yourself.
Financially, this often makes much more sense than a full exit:
Someone who stops working entirely at 63 loses around CHF 155’000 in pension value
With semi-retirement at 50%, the loss is only around CHF 55’000
You can also keep contributing to your 3rd pillar, benefit from tax advantages and gradually ease into the next life stage.
How do I prepare financially for early retirement?
If you want to retire early, you’ll need to start planning early.
The good news? You have several tools at your disposal – if you use them in time.
Steps to take:
Use your 3rd pillar: Contribute up to CHF 7’568 per year (2025 limit), ideally across several accounts so you can withdraw in stages and save on taxes.
Check whether buying into your pension fund is worth it: Especially if you have pension gaps. It increases your pension and reduces your tax bill.
Build up unrestricted assets: No limits, great for bonuses or inheritances.
Create a budget: What does your life cost today – and how will that change in retirement?
Plan for income gaps: How will you cover the period between your last salary and your first AHV payment?
What are the tax implications of early retirement in Switzerland?
Tax is often overlooked – but it can make a difference of thousands of francs.
In short:
AHV and pension income: Taxed in full as regular income
Capital withdrawals (e.g. pension fund or 3rd pillar): Taxed once, at a lower rate and separately
That’s why it makes sense to spread withdrawals over several years. This helps reduce your tax progression. Even the canton where you live can have a big impact.
Example: for CHF 500’000 in capital, your tax could range from 4% in Schwyz to 10% in Bern – a difference of CHF 30’000.
How can I invest my capital wisely?
Good question – because if you stop working at 60, you may need your capital to last another 25 to 30 years. Leaving it in a savings account won’t be enough.
Proven strategies include:
Shares and ETFs: for long-term growth and tax-free capital gains
Bonds: for stable returns with predictable risk
Property or alternative assets: depending on your risk profile and liquidity needs
If you want to build a portfolio that fits your pace – growth-oriented before retirement or income-focused after – it’s worth getting professional guidance.
How can Alpian support your early retirement?
A good idea only becomes real when it’s put into action. That’s where Alpian comes in.
What Alpian offers:
Tailored wealth management: Your capital is invested based on your time horizon and risk tolerance, with access to global markets.
Transparent fee structure: No fine print – you always know what you’re paying.
Digital app and human support: Manage everything through our intuitive app and speak directly to our expert Wealth Management team.
Whether you want to stop at 60 or gradually reduce at 63, Alpian combines modern technology with personal advice to support your journey.
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Looking for expert investment advice? Schedule your free session with a wealth advisor today.
Conclusion: early retirement is possible – but only with the right plan
Dreaming of stopping work at 60 instead of 65? More time for family, passion projects or simply less stress?
It’s entirely possible – but only with solid planning. So take time to review your pension entitlements, understand your costs, use every savings tool available and create a financial plan that fits.
The earlier you start, the more options you’ll have. And the sooner you start laying the foundations, the sooner your early retirement can become a reality.
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