10 years before retirement: Your financial countdown
February 1, 2025
4 min read
arvy's Teaser: You're 55, maybe 57. Retirement is suddenly no longer abstract — it's a date. And the decisions you make over the next 10 years are together worth CHF 50,000 to CHF 200,000. Pension fund buy-ins, staggered 3a withdrawal, annuity vs. lump sum, tax domicile — everything has an optimal moment. Here's the complete countdown: what to do when, year by year.
CHF 565k
Maximum optimisation potential in the last 10 years
3 years
Lock-up period after pension fund buy-in before capital withdrawal
6–12 months
Advance notice for pension fund lump sum registration
Why the last 10 years are the most important
In the first 30 years of your career you accumulate. In the last 10 years you optimise. And this 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 withdrawal saves CHF 15,000–30,000. The right annuity vs. lump sum decision is worth CHF 100,000+.
The problem: most people only think about this at 63 or 64 — when many trains have already left. The right time to plan is now.
The Countdown: Year by Year
10 years before (age ~55) — Create a complete overview
For the first time, pull everything together: estimated AHV pension, pension fund balance and projected pension, 3a balance, vested benefits, free assets, property, debts. What do you have? What do you need? How big is the gap?
✅ Order your AHV account statement — identify and close contribution gaps (limitation period: 5 years)
✅ Analyse your pension fund statement — buy-in potential, conversion rate (mandatory AND supra-mandatory), projected balance at 65 (→ Understanding Your Pension Fund Statement)
✅ Calculate your pension gap — AHV + pension fund vs. desired income in retirement (→ Pension Gap Calculator)
8–9 years before (age ~56–57) — Start pension fund buy-ins
If buy-in potential exists: start now, staggered over several years. Why staggered? Because you use the tax advantage every year — CHF 20,000 buy-in at 35% marginal rate = CHF 7,000 in annual tax savings.
⚠️ Critical rule: No buy-in within 3 years of a planned capital withdrawal — otherwise the tax advantage is reversed. If you want to withdraw capital at 65, the last buy-in must be completed by age 62.
✅ Build up 3a accounts — only 1–2 accounts? Open more now (target: 3–5 for staggered withdrawal)
7 years before (age ~58) — Mortgage strategy & early retirement
Review mortgage: Many banks require the mortgage to be reduced to 65% of the property value by retirement. If you're just above this, planning is needed now.
✅ Check indirect amortisation via 3a — last years to use this tax advantage (3a payment + secures mortgage)
✅ Evaluate early retirement — if you want to stop at 60 or 62, the numbers need running now (→ FIRE in Switzerland: Early Retirement Planning)
5 years before (age ~60) — Decide: annuity or lump sum
The single biggest financial decision of your life. Annuity: guaranteed, lifelong, but gone when you die. Lump sum: flexible, inheritable, but you bear the investment risk. The answer depends on: conversion rate, marital status, health, other assets, tax domicile.
✅ First 3a withdrawal possible — from 5 years before retirement age you can dissolve the first 3a account. Staggered over coming years = massive tax savings.
✅ Complete last pension fund buy-in — if you want capital: the 3-year lock-up period starts now
3 years before (age ~62) — Tax domicile & AHV splitting
Evaluate tax domicile: Capital withdrawal tax varies massively by canton. Moving from Zurich to Schwyz can save CHF 20,000–40,000 in taxes on a CHF 500,000 capital withdrawal. Not everyone wants to move — but those already considering it should do so before the withdrawal.
AHV income splitting for couples: Check that income splitting is running correctly. Apply for child-rearing and care credits if not already done.
✅ Plan second and third 3a withdrawal — staggered across different tax years
1 year before (age ~64) — Finalise everything
Pension fund registration: Lump sum withdrawal must often be registered 6–12 months in advance. Obtain spouse consent (written, certified).
AHV registration: Apply for the pension approx. 3–4 months before the desired start date. Decide on early or deferred withdrawal.
Health insurance: Daily sickness benefit ends at retirement. Check cover.
✅ Investment plan for retirement: How will the capital be invested? Define your withdrawal plan. (→ The 4% Rule for Switzerland)
What good planning concretely saves
| Measure | Period | Saving |
|---|---|---|
| Pension fund buy-ins staggered over 5 years | 55–60 | CHF 25,000–50,000 |
| 3a withdrawal staggered instead of all at once | 60–65 | CHF 10,000–25,000 |
| Optimal annuity vs. lump sum decision | 65 | CHF 50,000–150,000 |
| Optimise tax domicile | 62–63 | CHF 10,000–40,000 |
| Invest capital withdrawal instead of savings account | 65+ | CHF 100,000–300,000* |
| Total optimisation potential | CHF 195,000–565,000 |
*Over 20 years of retirement, difference between invested and savings account at CHF 400,000 capital. Illustration.
"The last 10 working years aren't just for working. They're for optimising. Every right decision in this phase is worth tens of thousands."
Frequently asked questions about retirement planning in Switzerland
When should I start planning my retirement in Switzerland?
Ideally 10 years before your planned date — around age 55. Pension fund buy-ins work best staggered over multiple years. The 3-year lock-up period before capital withdrawal must be respected. Those who start planning at 63 often miss the biggest optimisation levers.
How does the 3-year lock-up period after a pension fund buy-in work?
After a voluntary pension fund buy-in, no capital may be withdrawn for 3 years — otherwise the tax deduction is reversed and you must repay the savings. The last buy-in must therefore be completed at least 3 years before the planned capital withdrawal (e.g. last buy-in at 62 for withdrawal at 65).
Is it worth relocating to a tax-friendly canton before retirement?
For capital withdrawals of CHF 300,000+ the difference between Zurich and Schwyz can be CHF 15,000–40,000. The move must be genuine (no letterbox domicile) and well before the withdrawal. For many, it's one of the most valuable moves in the countdown.
How many 3a accounts do I need for optimal staggered withdrawal?
Ideally 3–5 separate accounts. From age 60 you dissolve one per year — in different tax years — to minimise the progressive capital withdrawal tax. Tax savings through staggering: CHF 10,000–25,000.
Your countdown starts today.
Pension fund buy-ins, staggered 3a withdrawal, annuity vs. lump sum, investment plan for retirement — arvy helps you make the decisions worth tens of thousands.
Open Pillar 3a | Start savings plan
Disclaimer: General information only. All amounts are illustrative. Tax implications are canton-specific and individual. arvy is an asset manager supervised by FINMA.
