10 years before retirement: Your financial countdown
February 1, 2025
2 min read
arvy's Teaser: You're 55, maybe 57. Retirement is no longer abstract — it's a date. And the decisions you make in the next 10 years are collectively worth CHF 50,000 to CHF 200,000. Pension fund buy-ins, 3a staggering, pension vs. lump sum, tax domicile, AHV splitting — everything has an optimal timing. Here's the complete countdown: what to do when, year by year.
Why the Last 10 Years Are the Most Important
In your first 30 working years, you accumulate. In the last 10, you optimise. And that optimisation is often worth more than all the saving before it. A single well-timed pension fund buy-in saves CHF 10,000–20,000 in taxes. Staggered withdrawals save CHF 15,000–30,000. The right pension-vs-lump-sum decision is worth CHF 100,000+.
The Countdown: Year by Year
10 Years Before (~Age 55)
🔍 Create a complete overview: AHV estimate, pension fund balance + projected pension, 3a balances, vested benefits, free assets, property, debts. What do you have? What do you need? How big is the gap?
✅ Order AHV account statement — identify and fill contribution gaps (statute of limitations: 5 years!)
✅ Analyse pension statement — buy-in potential, conversion rate (mandatory AND supra-mandatory), projected balance at 65
8–9 Years Before (~Age 56–57)
💰 Start pension fund buy-ins — staggered over multiple years. Each year's buy-in gives a separate tax deduction. CHF 20,000 buy-in at 35% marginal rate = CHF 7,000 tax savings per year.
⚠️ Critical rule: No buy-ins in the 3 years before a capital withdrawal — otherwise the tax benefit is clawed back.
✅ Open additional 3a accounts (target: 3–5 for staggered withdrawal)
7 Years Before (~Age 58)
🏠 Review mortgage strategy — affordability changes when income drops to AHV + pension. Many banks require the mortgage be reduced to 65% of property value by retirement.
✅ Evaluate early retirement — if you want to stop at 60 or 62, start calculating now (→ Early Retirement: What It Really Costs)
5 Years Before (~Age 60)
📋 Decide: pension vs. lump sum. The biggest single financial decision of your life. Depends on: conversion rate, marital status, health, other assets, tax domicile. (→ Pension or Lump Sum?)
✅ First 3a withdrawal possible (5 years before retirement age). Stagger over coming years for massive tax savings.
3 Years Before (~Age 62)
🏛️ Evaluate tax domicile: Capital withdrawal tax varies hugely by canton. Moving from Zurich to Schwyz can save CHF 20,000–40,000 on a CHF 500,000 withdrawal.
✅ Plan second and third 3a withdrawals — staggered across different tax years
1 Year Before (~Age 64)
📝 Finalise everything: Register capital withdrawal with pension fund (6–12 months ahead). Obtain spouse's written, certified consent. Register AHV pension (3–4 months ahead). Check health insurance coverage.
✅ Define investment plan for retirement: How will the capital be invested? Withdrawal plan. (→ The 4% Rule for Switzerland)
What Proper Planning Saves
"The last 10 working years aren't for working. They're for optimising. Every correct decision in this phase is worth tens of thousands."
Your countdown starts today.
Let's look at your situation together. Pension fund buy-ins, 3a staggering, pension vs. lump sum, retirement investment plan — we'll help you make the decisions worth tens of thousands.
Disclaimer: This article is for general information and does not constitute investment or tax advice. All amounts are illustrative. Tax implications vary by canton and individual situation. arvy is a FINMA-regulated asset manager.
