Partial retirement and lump-sum withdrawals: Important points easily explained

AHV Reform 21, which came into force on 1 January 2024, introduced new rules for the staggered withdrawal of pension capital. Here are the most important points:

1. Lump-sum withdrawals in three stages

• Retirement benefits can now be withdrawn in the form of a lump sum in a maximum of three stages.
• All withdrawals within a calendar year count as one step.
• After the third step, only a pension withdrawal is possible.

2. Rules for partial retirement

• First partial withdrawal: As a rule, the first withdrawal must amount to at least 20% of the total retirement benefit, unless the pension scheme allows less.
• Permanent salary reduction: The degree of employment must be permanently reduced and the insured salary adjusted accordingly.
• Minimum interval: There must be at least one year between instalments. In the case of shorter intervals, the tax authorities will check carefully whether there are valid reasons for this.

3. Tax aspects

• Staggered lump-sum withdrawals can be advantageous from a tax point of view, as this reduces tax progression.
• Pension benefits that are spread over several years reduce the tax burden.

4. Cantonal differences

• In the canton of Zurich, three lump-sum withdrawals are now permissible for tax purposes, which harmonises with the new legal provisions.
• Different regulations may apply in other cantons.

Conclusion: AHV Reform 21 creates clear guidelines for lump-sum withdrawals for partial retirement. Anyone planning to take partial retirement should consider the specific rules of the respective canton and find out about possible tax advantages.