Planning Retirement: How to Master the Transition in 5 Steps
A successful retirement does not begin on the first day without work, but years before.
The Myth of Automatic Security
Many Swiss people rely on pensions from the 1st and 2nd pillars being automatically sufficient. But reality shows: Often these only cover about a maximum of 60% of the last income. Without detailed budget planning and consideration of inflation and taxes, the dream of a carefree retirement can quickly develop cracks. Those who only start calculating at 64 have little room for corrections.
Expert Tip: The 5-Year Rule. Start your concrete retirement planning by age 55 to 60 at the latest. In this time window, you can still make tax-effective purchases into the pension fund and set the course for staggered withdrawal of your pension accounts to break tax progression.
The Cornerstones of Your Planning
A solid plan considers all financial aspects:
- Income-Expense Analysis: How much money do you really need monthly? Don't forget the future elimination of work expenses, but also the potentially rising healthcare costs.
- Pension Check: Request current pension forecasts from AHV and your pension fund.
- Tax Strategy: Plan the withdrawal of funds from the 2nd and 3rd pillars distributed over several years.
Checklist for Your Roadmap to Retirement
- Current pension statements from all pillars requested?
- Detailed budget for retirement created?
- Mortgage strategy for retirement discussed with the bank?
- Registration deadlines for capital withdrawal at the pension fund checked (often 6-12 months in advance)?
Conclusion
Those who plan their retirement instead of just waiting for it gain security and protect their assets.
Author
Adis Kavazovic
Head of Insurance & Financial Planning
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