Partial retirement—the smarter way to retire

Partial retirement is popular in Switzerland for a number of reasons, such as tax benefits and a positive impact on your financial situation. Here's what you need to know about leaving working life in stages.

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Do you dream of having more time for yourself, your grandchildren, or your hobbies? Then you are like many employees and self-employed people in Switzerland. Although early retirement frequently emerges as the initial solution, it may not always be the most beneficial choice.

One way of realizing your desire for more time is to opt for partial retirement. However, this decision should be paired with detailed financial planning that considers the various pension schemes available. This article will discuss the effects of partial retirement on your second pillar.

Rather than transitioning into retirement abruptly, you have the option to gradually phase out of your working life. This is the essence of "partial retirement" in Switzerland, where you retire in one or more stages. For instance, you could reduce your workload to 80 percent at age 61, to 60 percent at age 63, and then fully retire at age 65. If you have worked actively for several decades, the sudden shift to retirement can have significant health and emotional implications that should not be underestimated.