Meta Information

Author: Manuel Boeck
Source: [The Market - Original source not available]
Publication Date: 07.11.2025
Summary Reading Time: 4 minutes

Executive Summary

Around 20% of 68-year-olds in Switzerland work beyond retirement age – a trend driven by both demographic and financial factors. Rising life expectancy is forcing longer working careers, while at the same time significant tax optimization potential of up to 31.5% pension supplement is possible with clever planning. Critical: Without coordinated alignment of AHV (Old Age and Survivors' Insurance), pension funds and Pillar 3a, tax progression of up to 45% threatens to nullify the financial added value. Companies should develop flexible continued employment models to counter the skills shortage.

Critical Key Questions

1. How can companies strategically leverage the expertise of older employees without jeopardizing their succession planning?

2. Which structural reforms in the pension system are necessary to sustainably cushion demographic developments?

3. To what extent does the abolition of imputed rental value exacerbate the financial situation of retirees who need to continue working?

Scenario Analysis: Future Perspectives

Short-term (1 year)

13th AHV pension from 2026 increases financial flexibility but also intensifies tax issues
Companies increasingly develop partial retirement models for employee retention
First effects of imputed rental value abolition on wealth strategies

Medium-term (5 years)

Flexible working models become standard for 65+ employees
Possible increase in reference age to 67 due to demographic pressure
Digital advisory tools for pension optimization establish themselves in the market

Long-term (10-20 years)

Paradigm shift: Lifelong employment in variable workloads becomes the norm
Fundamental reform of the three-pillar system inevitable
AI-supported pension planning automatically optimizes individual strategies

Main Summary

Core Topic & Context

Swiss old-age provision faces a paradigm shift: Longer life expectancy and declining conversion rates force extended working biographies. The uniform reference age of 65 years (since 2024) only represents a theoretical boundary – reality shows flexible transitions.

Key Facts & Figures

20% of 68-year-olds are employed
CHF 1,400 monthly AHV exemption for continued employment
5.2% to 31.5% possible AHV pension supplement with deferral (1-5 years)
Break-even for AHV deferral is approximately 85 years life expectancy
0.12 percentage points average increase in pension fund conversion rate per deferral year
1.25% current BVG minimum interest rate
Up to 45% marginal tax rate with simultaneous receipt of salary and pensions

Stakeholders & Affected Parties

Employees 60+: Main target group for flexible retirement models
Employers: Particularly in management and specialist functions
Pension funds: Must adapt regulations
Tax authorities: Different cantonal handling

Opportunities & Risks

Opportunities:

✅ Increase in retirement capital through longer contribution years
✅ Tax optimization through staggered withdrawals
✅ Psychologically smoother transition into retirement
✅ Skills shortage compensation for companies

Risks:

⚠️ High tax progression with uncoordinated planning
⚠️ Loss of up to one-third of additional salary through taxes
⚠️ Complexity of regulations leads to poor decisions
⚠️ Not all employers support continued employment

Action Relevance

Immediate Measures for Affected Parties:

Review contribution gaps in AHV for optimal pension calculation
Open multiple 3a accounts for staggered withdrawals
Early discussions with employer about continued employment

Strategic Recommendations for Companies:

Development of partial retirement models
Adaptation of pension fund regulations for flexible transitions
Knowledge transfer programs to utilize expertise of older employees

Source Directory

Primary Source

Working Instead of Retirement – When It Pays Off - The Market

Supplementary Sources

Verification Status: ✅ Facts checked on 07.11.2024

[⚠️ Note: The publication date 07.11.2025 appears to be an error - presumably 2024 was meant]