April 3, 2026
Approaching retirement means entering a new stage of life, often expected, sometimes dreaded. Between dreams of travel, projects that have been put off for years and financial concerns, it is becoming essential to know if future income will make it possible to live comfortably, or if certain habits will have to be revised.
When the professional activity comes to an end, the main sources of income become the AHV and the pension fund. Together, they generally cover between 60 and 70% of the previous salary. Many then imagine that spending will follow this downward trend. However, in reality, they are only decreasing slightly, often still reaching 70 to 90% of the previous standard of living.
This difference can lead to a financial imbalance if it was not anticipated. In addition, several factors complicate things: the increase in life expectancy, the increase in medical expenses, not to mention inflation that is difficult to predict. It then becomes essential to supplement this income with personal savings, such as pillar 3a, which also has significant tax advantages.
Planning your budget is much more than filling out a chart of numbers. It means becoming aware of your resources and future needs in order to make the right choices today.Starting by analyzing your current expenses allows you to lay a solid basis.Then, it is useful to project these expenses over time, taking into account changes related to retirement.
Some expenses will remain constant — such as rent or health insurance premiums — while others, related to work, will disappear (transport, meals out, professional clothing). On the contrary, others could increase. For example, we think of leisure activities, which are often more present in the first years of retirement, or even medical care, which is more important as we age.
A good retirement budget also includes a margin of safety. It is not only a question of covering fixed costs, but also of providing an emergency fund, capable of absorbing a financial shock or an unexpected expense. It is this flexibility that will allow you to stay on track without stress, even in the event of the unexpected.
For those who wish to go further, the constitution of capital to be passed on to subsequent generations can also be considered. But this should never come at the expense of one's own financial security.
Many people think that the tax burden decreases once they retire. This is not always true. Certainly, taxable income changes, but some deductions disappear, such as business expenses. In addition, capital withdrawals from the 2nd and 3rd pillars are subject to specific taxes. It is therefore crucial to integrate them into the overall calculation. Careful planning sometimes makes it possible to smooth out these withdrawals over several years, and thus alleviate the tax impact.
The best time to focus on retirement is before it's just around the corner. From the age of 50, it becomes relevant to assess your situation and identify a possible pension gap. There is then time to act, whether by making additional payments into pillar 3a or by buying back into the pension fund.
It also allows us to ask ourselves broader questions: do we want to retire early? Does it make sense to extend the activity beyond the legal age? What consequences would this have on our budget and our taxation?
Budgeting for retirement is more than just saving money. Above all, it means giving yourself the means to live this period with serenity, without having to give up your desires or worry about the future. It is a work of projection, but also an opportunity to reflect on what really matters.
The sooner you start, the more likely you are to retire with a clear plan, adapted to your needs and dreams. Good planning is already a step towards a successful retirement.
