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An All-Encompassing Handbook on Retirement for Swiss Women in 2023
Dr. Mahnoosh Mirghaemi
June 2, 2023
2 min read
Welcome to our blog, where we aim to provide an all-encompassing guide to retirement for women in Switzerland. From the ideal retirement age to the ins and outs of pension plans and calculators, we've got you covered. Early retirement, something many dream of, is also something we'll look into. Remember, planning for retirement is essential and it's never too late (or too early) to start.
We can't stress enough the importance of a retirement calculator in your financial planning journey. Colivar introduced an interactive tool that allows you to estimate the retirement income you will have and the amount you will need to save to maintain your desired lifestyle after retirement.
You input factors such as your current age, retirement age, current savings, and expected yearly contributions. In return, you'll get an estimate of the amount you'll have saved by the time you retire, and how long these savings will last.
What makes this extremely interesting is that it allows you to play around with different scenarios. You can adjust the variables to see how making more contributions or retiring later can significantly affect your retirement savings. A retirement calculator is an excellent tool for visualizing your financial future, making the process of saving for retirement less abstract and more tangible.
As a Swiss resident, you're entitled to the benefits of a well-structured pension plan system, often referred to as the "three-pillar" system.
• The first pillar is the state pension, aimed at covering your basic living costs.
• The second pillar is your occupational pension scheme, which is mandatory for employees in Switzerland.
• Lastly, the third pillar is a voluntary private pension, which allows for additional savings and investments.
Understanding your pension plan options and their benefits is essential for retirement planning. Take some time to research each pillar and consider meeting with a financial advisor to discuss which options suit your individual needs and circumstances.
For those who are dreaming of hanging up their work hats earlier than the official retirement age, you are not alone. The idea of early retirement has gained significant traction in recent years. This is possible in Switzerland, but it requires careful planning and saving.
Early retirement can often mean fewer years of income and more years of living off your savings, so it's important to have a substantial retirement fund. An understanding of your pension rights, potential tax implications and healthcare costs are also important to consider.
Whether you're aiming for early retirement or planning to retire at the official age, having a robust retirement plan is crucial. This should encompass your savings plan, pension benefits, potential investments, and a well-thought-out budget for your retirement years.
It's also beneficial to consider the lifestyle you want in retirement. Do you plan to travel? Will you downsize your home? These decisions will significantly influence your retirement budget.
In Switzerland, the official retirement age is 64 for women and 65 for men. However, changes are on the horizon as the Swiss Federal Council has proposed raising the retirement age for women to 65, aligning it with men's retirement age. This proposal has sparked a range of opinions, with some in favour for equality reasons, and others concerned about the potential financial difficulties for women who often face wage and pension inequalities. It's important to understand your retirement age, as it can greatly impact your financial planning.
Retirement planning can feel overwhelming, but the good news is, there are a plethora of resources available that can simplify the process and provide you with the knowledge you need. Here are some excellent resources that women in Switzerland might find particularly helpful:
Swiss Federal Social Insurance Office (FSIO) - Provides comprehensive information on the retirement system in Switzerland, including the current retirement age and proposed changes. (FSIO online (admin.ch)).
Swiss Life - An insurance and pension company that offers a wealth of information about pension plans in Switzerland. (Individuals – Swiss Life)
Retirement Calculator by Personal Capital - This free app is an excellent resource for estimating how much you need to save for retirement. It's user-friendly, allowing you to adjust a wide range of variables to tailor the results to your specific circumstances. (Empower Personal Wealth | Empower)
Mint - Mint is a fantastic resource for budgeting, tracking spending, and setting financial goals, all of which are important aspects of retirement planning.
"The Three Pillars of Swiss Pensions" by Monika Bütler - This book provides a detailed exploration of the Swiss pension system, including the three pillars and how they work together to provide for retirees.
"The New Retirementality: Planning Your Life and Living Your Dreams...at Any Age You Want" by Mitch Anthony - This book provides practical tips on retirement planning and emphasizes the importance of considering your lifestyle desires as well as financial needs.
