One year before retirement: Things to keep in mind
“Don’t leave it to chance: A step-by-step guide to early retirement in Switzerland.”
Retirement expert
published on
28. March 2026
Key Points at a Glance
The transition to retirement marks a fundamental change in your personal financial situation. The decisions you make in the year leading up to your retirement will determine your future standard of living.
AHV Benefits: No Automatic Payment
A common misconception is that the AHV pension is automatically paid out upon reaching retirement age. You must actively apply for benefits with the relevant compensation office. Ideally, you should submit your application about six months before Retirement. You can obtain information about the AHV branch office responsible for you from your employer.
Tax optimization through Pillar 3a
Even in the year of your Retirement, you can make contributions to Pillar 3a and thus save on taxes. The following maximum amounts apply:
- With a pension fund: Up to 7,258 francs.
- Without a pension fund: Up to 20 percent of net earned income, up to a maximum of 36,288 francs.
It is important that the transfer takes place before you reach the standard AHV retirement age, unless you continue to work beyond that point. If you plan to withdraw all or part of your pension fund balance as a lump sum, you should stagger the payout of your retirement savings over several years to significantly reduce your tax burden.
Homeownership and Securing Liquidity
If you intend to pay off your mortgage upon Retirement, you must observe the notice periods. Keep in mind, however, that capital is tied up in your home and, in Retirement, often cannot be easily liquidated through a mortgage top-up. Therefore, ensure that you always have sufficient liquid funds available for unforeseen circumstances.
Financial Plan as a Basis for Decision-Making
A detailed financial plan is essential in the year leading up to Retirement. It reveals whether your pension income will cover future expenses or whether you will need to systematically draw down your assets. In this context, you should review the following points:
- Investment Strategy: Does your current strategy still align with this new phase of life without a fixed income?
- Voluntary contributions: Consider whether additional payments into your pension fund make sense to improve your retirement savings.
- Annuity or lump sum: The choice between a monthly annuity or a one-time lump-sum payment is one of the most significant decisions in retirement planning.
Protecting Your Family and Estate Planning
Use the time before Retirement to settle your estate. Early planning allows you to significantly determine how your assets will be distributed later and, in particular, provides financial security for your partner. Additionally, clear arrangements can help avoid potential conflicts among heirs and optimize estate taxes.
Professional support for your retirement planning
The regulations surrounding AHV, pension funds, and taxes are complex and often difficult to navigate. Since wrong decisions can have long-term financial consequences, a professional review of your situation is advisable.
We’d be happy to help you prepare for Retirement with peace of mind. With the MyLifePlan Check, experts assess your individual situation and show you how to optimize your financial planning for Retirement.
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Frequently Asked Questions
Do I need to actively apply for my AHV pension, or is it paid out automatically?
The AHV old-age pension is not automatically paid out once you reach retirement age. You are required to actively apply for it with the relevant compensation office. To ensure uninterrupted payments, you should ideally submit your application six months before your planned retirement date. You can ask your employer directly for information about the relevant AHV branch office.
Can I still make contributions to Pillar 3a in the year of my Retirement?
Yes, contributions to Pillar 3a are also possible in the year of your Retirement and offer tax advantages. Unless you remain employed beyond the standard AHV retirement age, the transfer must be made before this deadline. Employed individuals affiliated with a pension fund can contribute up to 7,258 francs, while those without a pension fund can claim up to 20 percent of their net earned income (maximum 36,288 francs) for tax purposes.
What do I need to consider when repaying my mortgage?
If you plan to reduce or pay off your mortgage upon Retirement, timely termination of the contracts is absolutely necessary. However, it is important not to jeopardize your own liquidity in the process, as capital remains tied up in the property. Since it is often difficult to top up a mortgage later in retirement due to changes in income, you should always retain sufficient liquid funds for unforeseen expenses.
How can I save on taxes when withdrawing my pension funds?
A key strategy in retirement planning is to stagger the timing of withdrawals. If you have lump-sum payments from your pension fund and assets from Pillar 3a distributed over several years, you can significantly reduce your tax burden. It is also advisable to settle your estate early to optimize inheritance tax for your surviving dependents and, in particular, to provide financial security for your partner.