Retirement before or after the hour?

Retirement before or after the hour?

"I'm approaching retirement age and would like to know whether I can take my pension after the set age if I don't opt for early retirement. Also, if I reach retirement age on the 13th of the month, will I be entitled to the pension from the following day?

A. Bernex

The legal retirement age for entitlement to an old-age pension in Switzerland is 65 for men and 64 for women, in accordance with Article 21 of the Federal Law on Old-Age and Survivors' Insurance (LAVS). Entitlement to a pension commences on the first day of the month following the month in which you reach this age, and lapses on the death of the person entitled to the pension. You will therefore only be entitled to your pension from the month following your birthday.

However, all insured persons may, if they wish, draw their pension even before they reach ordinary retirement age, but at no earlier than age 63 for men and age 62 for women. Article 40 of the Federal Law on Old-Age Pensions (LAVS) expressly states that people who meet the conditions for entitlement to an ordinary old-age pension may have their pension paid out one or two years earlier. In such cases, the entitlement begins on the first day of the month following the age of 64 or 63 for men, or the first day of the month following the age of 63 or 62 for women.

In such a case, the person opting for early retirement must accept an actuarial reduction in their pension. In accordance with the law's implementing regulations, taking early retirement one year earlier results in a reduction of 6.8% and retiring two years earlier results in a reduction of 13.6% (art. 56 RAVS). Please note that in the event of early retirement, you will still be required to pay AVS contributions until you reach statutory retirement age.

In addition, under Art. 39 LAVS, persons entitled to an old-age pension may defer payment of their pension for a minimum of one year and a maximum of five years. Article 55 RAVS stipulates that the deferment period begins on the first day of the month following the month in which you reach retirement age. The declaration of deferment must be submitted in writing within one year of the start of the deferment period. In this case, the AVS pension will be increased by a monthly supplement calculated on the basis of the length of the deferment.