Not all employees want to retire once they reach normal retirement age. Many would like to work for longer. Others would like to retire somewhat earlier, ideally on a staggered basis. With modern occupational provisions, neither option poses any particular problems.
Flexible and individually structured occupational provisions are not only in keeping with the times, they also reflect a real need. Only a third of the workforce in Switzerland still observes the statutory retirement age of 64/65. Moreover, the trend is increasingly moving away from early retirement to remaining within the workforce for longer.
Less, but work for longer
Insured employees can nowadays take early retirement or enter semi-retirement from the age of 58, or even reduce their workload on a staggered basis of 20 % increments. If an employee reduces his workload, he is entitled to withdraw some of his assets from the 2nd pillar. Furthermore, if the employee decides to continue working from the age of 58 on a salary reduced by up to 50 %, he is still entitled to maintain his occupational provisions in full until the normal age of retirement and even to continue to make purchases. The advantage: There are no pension reductions. Good to know: Nowadays the BVG facilitates paid employment beyond the statutory age of retirement up until the 70th year of age. It is generally possible to continue paying into the 2nd pillar even during this phase. However, it is important to keep in mind, that if one does not pay in until the normal age of retirement, the retirement benefits will automatically diminish. The consequence: AHV and BVG pensions or one’s BVG capital will be correspondingly smaller. These gaps can be closed by making voluntary purchases before retirement.
Good for employers too
Flexible occupational provisions can be a real competitive advantage when it comes to employees' working conditions, which offers the opportunity to secure key workers for the company over the long term.
At a glance - Attractive opportunities with Swiss Life:
- Normal retirement age for women 64, men 65 years
- Close any shortfalls through voluntary purchases
- Withdraw retirement benefits as a pension or lump sum
Early retirement from the age of 58:
- A reduced conversion rate is used for the retirement pension
- Compensation of pension or capital reductions possible through voluntary purchases
Semi-retirement from the age of 58:
- Within the scope of the reduction: Termination of the employment relationship and withdrawal of the retirement benefits as a pension or lump sum
- For tax reasons: Limited to two reductions
- Continue working after the normal retirement age until age 70 at the latest
- Continuation of insurance with continuation of the employment relationship with or without retirement credits. In the event of termination due to health reasons, the retirement benefits are triggered at the end of the employment relationship.
- An increased conversion rate is used for the retirement pension
France: Swiss Life France targets seniors
Two years ago, Swiss Life France developed a special new product for senior people: Swiss Life Santé Retraités, a health contract dedicated to retirees.
Beneficiaries are retirees aged 55 years to age 80, who can select from five different solutions, depending the level and type of cover they require.
Benefits are adapted to the targeted clients and include: specialised branches of medicine, optical coverages, dental treatments, and hospitalisation costs. As Swiss Life Santé Retraités is designed to meet the specific needs of this population, benefits include, for example, reimbursement of hearing aids, as well as the costs of preventative actions such as screening for osteoporosis and colon cancer.
Other services included in the contract comprise of: delivery of drugs and medicines, organisation of home care, psychological assistance, pet care, and other types of support. To complete the offer and allow clients to stay in constant touch, many on-line services are accessible via the website www.swisslife.fr