Partial Retirement in Switzerland: A Flexible and Gradual Transition to Retirement
“Retirement doesn’t mean stopping. It means having the freedom to choose.”
Retirement expert
published on
9. April 2026
Key Points at a Glance
The transition to retirement does not have to be abrupt. An increasing number of working people in Switzerland are opting for partial retirement to phase out of their careers gradually and in a way that suits their individual needs. This model allows individuals to gradually reduce their workload while simultaneously receiving their first retirement benefits.
Requirements for partial retirement in Switzerland
Partial retirement is generally possible between the ages of 58 and 70. Since January 1, 2024, pension funds have been legally required to offer a phased retirement, which must be available starting no later than age 63.
Certain conditions must be met for implementation:
- Employer’s consent: Reducing working hours requires the employer’s consent.
- Permanence and significance: The workload and income must be permanently reduced. A subsequent increase in the workload with the same employer is usually not permitted.
- Extent of the steps: The reduction must be significant, with many regulations stipulating a reduction of at least 20%. A maximum of three retirement steps are permitted, with the final step marking full retirement.
Impact on the three pillars of retirement provision
Partial retirement affects all areas of retirement provision differently. A coordinated approach is therefore essential for financial stability.
1st Pillar (AHV)
The AHV pension can be claimed up to two years before the reference age. Since the beginning of 2024, partial early withdrawal of between 20% and 80% of the pension in up to three stages has also been possible. Please note that early withdrawal results in a lifelong reduction of the pension. As of now, the reduction is 6.8% per year of early withdrawal. For women of the transitional generation (born between 1961 and 1969), specific special regulations and, in some cases, lower reduction rates apply due to the gradual increase of the reference age to 65.
2nd Pillar (Pension Fund)
With each step toward partial retirement, you can withdraw capital in proportion to the reduction in working hours, claim a partial pension, or choose a combination of both.
- Pension withdrawal: The partial pension will be lower for life, as the retirement capital is smaller and a lower conversion rate applies.
- Lump-sum withdrawal: A staggered lump-sum withdrawal over several years can significantly reduce the tax burden.
- Pension gaps: Since fewer savings contributions are paid in with reduced working hours, future retirement assets decrease.
3rd Pillar (Private Pension)
Assets from Pillar 3a can be withdrawn no earlier than five years before reaching the reference age. Those who remain part-time employed beyond the reference age and earn income subject to AHV can continue to make contributions to the 3rd pillar up to age 70 and claim these as tax deductions.
Tax Benefits Through Staggered Withdrawals
A key advantage of partial retirement in Switzerland is the potential for tax optimization. By staggering the withdrawal of lump-sum payments from the pension fund and Pillar 3a over several tax years, the progressive tax rate can be mitigated.
Since tax regulations and minimum withdrawal amounts may vary by canton, it is advisable to consult the relevant tax authorities in advance. It is also important to note that lump-sum withdrawals from different sources in the same year are aggregated for tax purposes.
Alternative: Reducing Workload Without Drawing Benefits
If financial resources are sufficient or if you do not wish to withdraw from your retirement savings early, you can reduce your workload without simultaneously drawing retirement benefits. In this case, the capital remains fully invested and continues to accrue interest. Many pension funds also allow you to continue insuring your previous insured salary despite the reduction in order to maintain stable pension entitlements, although this generally requires the insured person to cover the additional contribution shares.
Conclusion: Early pension planning starting at age 40
Partial retirement offers great flexibility, but requires precise preparation due to the complex interplay between income, taxes, and pension benefits. Experts recommend starting detailed retirement planning as early as your 40th birthday—ideally even sooner. This allows income gaps to be identified in time and closed through voluntary contributions to the pension fund or targeted savings in the third pillar.
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Frequently Asked Questions
At what age is partial retirement possible, and how many steps are allowed?
In Switzerland, partial retirement can generally be initiated between the ages of 58 and 70. The law requires pension funds to offer this option starting no later than age 63. A maximum of three retirement steps are permitted in total, with the third step representing complete withdrawal from the workforce. For each step, the work load must be reduced by a certain minimum percentage. As a rule, a reduction of at least 20% is required.
Can a reduced work load be increased again at a later date?
No, the reduction in the level of employment as part of partial retirement must be permanent. An increase in the workload after a partial retirement step has already taken place is generally not permitted—at least with the same employer. It is therefore important to carefully assess the financial consequences of the workload reduction in advance, as this step cannot be reversed.
What are the financial consequences of taking early partial AHV benefits?
Since the reform at the beginning of 2024, the AHV pension can be claimed flexibly between the ages of 63 and 70, with partial benefits ranging from 20% to 80%. However, claiming benefits before reaching the reference age results in a lifelong reduction of the pension. For each year of early withdrawal, the pension is currently reduced by 6.8%. For women of the transitional generation (born between 1961 and 1969), specific special regulations and, in some cases, lower reduction rates apply due to the gradual increase of the reference age to 65.
How can partial retirement be used to optimize your tax burden?
Tax advantages can be achieved in particular through staggered lump-sum withdrawals. Instead of withdrawing the entire balance from the pension fund or Pillar 3a in a single year, the payout is spread over several years. This breaks the tax progression and can lead to savings of several thousand francs. However, the regulations vary by canton. It should be noted that lump-sum withdrawals from different pension sources within the same calendar year are aggregated for tax purposes, which is why spreading payments across different tax periods is particularly efficient.