The numbers · 3 min read
Your FIRE number: how much is enough in Switzerland?
Multiply yearly spending by 25 to 30 for a first answer, then adjust for AHV, pension fund and Pillar 3a. A table in francs and the Swiss twist.
Education, not financial advice. Use at your own risk. Read the full disclaimer
In short
- A first estimate is yearly spending divided by a withdrawal rate: 25 times at 4%, about 29 times at 3.5%.
- Every CHF 500 of monthly spending adds about CHF 171,000 to the pot you need at a 3.5% rate.
- In Switzerland the savings you need on the day you stop are smaller than the simple number, because AHV and the pension fund pay later, but they must bridge the years before that.
If you are new to the idea, start with what FIRE is. Your FIRE number is the pot you need so that its returns, plus your pensions, can pay for your life. The first answer takes one line of arithmetic. The Swiss answer takes a little more thought, because three pillars arrive at different ages.
The first answer: spending divided by a rate
Take your yearly spending and divide it by a withdrawal rate, the share of the pot you can safely take out each year. At 4% that means 25 times your spending. At 3.5%, the safer rate for a long early retirement, it means about 29 times. We explain why in the 4% rule and why 3.5% is safer.
| Spending per month | At 4% | At 3.5% | At 3% |
|---|---|---|---|
| CHF 2,000 | CHF 600,000 | CHF 686,000 | CHF 800,000 |
| CHF 2,500 | CHF 750,000 | CHF 857,000 | CHF 1,000,000 |
| CHF 3,000 | CHF 900,000 | CHF 1,029,000 | CHF 1,200,000 |
| CHF 4,000 | CHF 1,200,000 | CHF 1,371,000 | CHF 1,600,000 |
| CHF 5,000 | CHF 1,500,000 | CHF 1,714,000 | CHF 2,000,000 |
| CHF 7,000 | CHF 2,100,000 | CHF 2,400,000 | CHF 2,800,000 |
Read one row to see the lever: at 3.5%, each extra CHF 500 of monthly spending adds about CHF 171,000 to the number. A smaller lifestyle is the cheapest way to shrink it. More on that in you need less than you think.
The Swiss twist: pensions arrive later
The simple number assumes you live off the pot for ever. In Switzerland you will not. At about 65 the AHV pension starts, and the pension fund pays an annuity or a lump sum. After that, your pot only has to cover the gap between your spending and your pensions.
So the savings you need on the day you stop can be lower than the simple number. They still have to do two jobs. The calculator checks both:
- Your accessible savings never run out before the pensions start.
- At that point, what is left can still carry the part of your spending the pensions do not cover.
Example A 30-year-old who spends CHF 4,000 a month has a simple number of CHF 1,371,000. With our example assumptions the calculator finds independence at about age 54, with roughly CHF 697,000 of accessible savings on that day. The rest of the plan is carried by the pension fund and AHV. Taxes are simplified in those figures.
The three pillars matter here. Money you cannot reach before about age 60 does not pay your rent at 50.
What moves your number
- Spending. The biggest lever by far.
- Withdrawal rate. 3% to 4% is the usual range. Lower is safer and costs more.
- Time horizon. A 60-year-old needs the pot to last about 35 years, a 45-year-old about 50.
- Taxes and insurance. Health insurance and wealth tax continue after you stop working.
- One-off costs. A home, children, a car. Add them to the plan, not to a hope.
Next step
Put your own spending into the calculator. If you want to see how fast the number can be reached, read the savings rate guide.
Try it with your numbers
Put your own monthly spending into the calculator and see your number, then see how your pensions change it.
Starts with
- Age 32
- Spend CHF 3’500 / month
- Save CHF 2’000 / month
- Saved CHF 50’000
Free and private. Your numbers stay on your device. Estimates for planning, not advice. Use at your own risk.
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