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Swiss pensions · 3 min read

The three pillars when you retire early

AHV, pension fund and Pillar 3a: what each one pays, when you can reach it and what that means if you stop working before 65.

myFIREplan.ch editorial · Published

Education, not financial advice. Use at your own risk. Read the full disclaimer

A temple front with a red pediment and three columns in black, blue and ochre.

In short

  • Each pillar has its own access age, so the question is not only how much you have but how much you can reach.
  • Between stopping work and about age 60 you live on free savings. That bridge is what an early retiree has to build.
  • AHV, pension fund and Pillar 3a all allow early access in some form, and each form has a cost.

Try this with your numbers →

Switzerland’s retirement system has three pillars. For a normal career they arrive together at 65. For an early retirement they do not. The useful question is not "how much do I have?" but "how much can I reach at each age?"

The three pillars at a glance

PillarWhat it isTypical access
1. AHVState pension, paid for lifeFrom 65, or 1 to 2 years earlier with a lifelong reduction
2. Pension fund (BVG)Savings with your employer’s fundFrom about 58 if the plan allows, or from 5 years before 65 from a vested benefits account
3a. Private pensionTax-advantaged savings accountFrom 5 years before 65, or when you leave Switzerland for good

Access rules differ by plan and change over time. Treat the ages above as a guide and confirm them with your own fund.

The bridge

Say you stop working at 50. From 50 to about 58 or 60 your pension fund and Pillar 3a are out of reach, and the AHV is 13 to 15 years away. You live on free savings, the money outside the pillars. That bridge pot is the heart of an early-retirement plan, and it is why a million francs in total can still be too little if most of it is locked.

A rough timeline for someone who stops at 50:

  1. Age 50 to 58: free savings only.
  2. Age 58 to 60: pension fund options open, depending on the plan.
  3. Age 60: Pillar 3a and the vested benefits account can be withdrawn.
  4. Age 63 to 65: AHV, reduced if you draw it early.

What each pillar asks of you

AHV. A full pension needs 44 contribution years. If you stop working, you still pay as a non-employed person, or your pension shrinks. Read AHV gaps when you retire early.

Pension fund. You stop adding to it. You can keep it as an annuity, take a lump sum, or leave the capital in a vested benefits account. See your pension fund before 65.

Pillar 3a. The tax deduction is attractive while you work, and the money becomes useful from age 60. See Pillar 3a for early retirees.

What it means for your number

A pot that is large but mostly locked cannot pay a rent at 50. A smaller pot that you can reach, plus pillars that open on time, can. That is why the same total can mean very different retirement dates for two people.

Your FIRE number has two parts: the bridge pot you need until the pillars open, and the plan after that. The calculator tracks each bucket separately and checks that the bridge holds. For the arithmetic of the pot itself, see your FIRE number.

Next step

Open the calculator, enter your own balances, and see where the bridge ends.

Try it with your numbers

Enter your pension fund and Pillar 3a balances and see how they carry the years after the bridge.

Starts with

  • Age 35
  • Spend CHF 4’000 / month
  • Save CHF 1’800 / month
  • Saved CHF 60’000
  • Pension fund CHF 90’000
  • Pillar 3a CHF 30’000

Open the calculator

Free and private. Your numbers stay on your device. Estimates for planning, not advice. Use at your own risk.