April 3, 2026
In Switzerland, retiring is not a simple administrative step. It is a system structured in several levels, designed to guarantee income throughout old age. Since January 1, 2024, significant adjustments have been put in place, including a harmonized retirement age of 65 for men and women.
Unlike countries like France, where retirement is mainly based on a distribution system (assets finance pensioners' pensions), Switzerland uses a mixed model, combining solidarity and individual savings. This model is based on three complementary pillars.
This is the foundation of Swiss retirement. Everyone contributes, whether employed, self-employed, or not working. Contributions are deducted from wages or calculated according to wealth in the case of non-active persons. AHV works on the principle of solidarity between generations: contributions from working people are used to pay pensions to current retirees.
To receive a full pension, you must have contributed for 44 years. Otherwise, the pension is reduced proportionally, at a rate of around 2.3% less per missing year. The pension amount also depends on average annual income and certain family elements, such as taking care of children.
In 2024, a single person receives between CHF 1,225 and CHF 2,450 per month. A married couple or in a registered partnership cannot receive more than CHF 3,675 per month, which is 150% of the maximum individual pension.
This second level is mandatory for employees earning more than CHF 22,050 per year. It works according to a capitalization principle: the amounts contributed are saved in a personal account and will be used to finance retirement in the form of an annuity or capital.
The amount contributed depends on the insured salary, age and the employer's pension plan. The older you get, the more contributions increase, ranging from 7% to 18% of the coordinated salary. At retirement age, this capital is either converted into a pension at a rate of 6.8% annually, or returned to the saver. This decision is up to everyone and is one of the most important decisions in preparing for your retirement.
It is also possible to use 2nd pillar assets before retirement, for example to start a business or buy your main residence.
Finally, everyone can supplement their retirement by putting money aside via the 3rd pillar, which is optional. It exists in two forms:
3a is supervised savings. It offers an advantageous tax framework: the amounts paid are deductible from taxable income. Each year, employees can pay up to CHF 7,056, and the self-employed up to CHF 35,280.
The money is locked up until retirement, except in certain special cases, such as
At the time of withdrawal, a single tax is applied, often less burdensome than conventional income tax.
The 3b is much freer. It can take many forms: a savings account, life insurance, or financial investments. Unlike 3a, payments are not capped, and money can be withdrawn at any time. On the other hand, it does not offer the same tax advantages as pillar 3a.
It is often used to supplement your retirement even further or to plan other projects (children's studies, investments, etc.).
A French person who has worked in Switzerland depends on the Swiss regime, but the periods worked in France are not lost. Thanks to bilateral agreements, the contribution periods in each country are taken into account to calculate pension rights.
When you return to live in France, you can consider buying back contributions from the French regime within 10 years. On the other hand, it is impossible to buy back years missing from the AHV.
If you receive an AHV pension as a pensioner living abroad, it can be paid out in the currency of your country of residence.
