Health insurance without a salary: what early retirees pay

Health insurance is a large and rising bill for every Swiss resident. It does not depend on whether you work, so for an early retiree it becomes a fixed cost you must carry for decades. Plan it in the budget on day one.

What is compulsory

Everyone living in Switzerland must have basic insurance within three months of arrival or birth. Insurers must accept you, and the basic benefits are the same for everyone. What differs is the price.

Premiums depend on:

• Canton and region. The same plan can cost much more in one canton than another.
• Age group. Adults pay one rate from 26.
• Model. Standard, family doctor, HMO or telemedicine. Restricted models cost less.
• Deductible. You choose between CHF 300 and CHF 2,500 a year.

For one adult, premiums often fall in the range of roughly CHF 300 to 600 a month, depending on those four factors. Premiums have risen faster than inflation in recent years, so plan for increases rather than for a flat figure.

The deductible choice

With the lowest deductible you pay a higher premium and almost nothing when you need care. With the highest you pay a lower premium and carry the cost of the first CHF 2,500 yourself, then 10% of further costs up to CHF 700 a year. The most you can pay out of pocket in a year is therefore about CHF 3,200, plus a small daily contribution in hospital.

If you pick the high deductible, set that amount aside in a health reserve. If the reserve is not there, the saving is an illusion.

Accident cover

When you work at least eight hours a week for an employer, accident cover comes through your employer. When you stop, you must include accident cover in your basic health policy. Do it when you leave, not later. It adds to the premium.

Premium subsidies

Many cantons reduce premiums for households with a low taxable income or wealth. An early retiree with a low taxable income may qualify, but the rules vary and some cantons take wealth into account. The subsidy is often not automatic, so apply and keep checking each year.

Supplementary insurance

Supplementary insurance covers extras such as dental care, glasses or a private ward. It is optional and based on health, so you may not be able to get it back once you cancel. Think carefully before you drop a policy you cannot replace.

What to put in your plan

Health insurance also decides a lot if you consider moving. See retiring abroad from Switzerland. For tax effects, see taxes in early retirement. Read how pensions are added in AHV gaps and the three pillars.

Next step

Open the calculator, include your premium in the monthly figure, and see the result.