Last update: 17.09.2024 08:37
Many people ask themselves “When will I receive my pension fund pension?” With the AHV21 reform, there are numerous innovations in AHV. But not only that. It also brings many improvements for the second pillar and more freedom for all insured persons. We take a look at the most important improvements that you too may soon benefit from.
Neither early retirement nor later retirement is provided for in the occupational pension scheme or the BVG law. Retirement therefore generally takes place at the normal retirement age, i.e. 64 for women and 65 for men.
The BVG only outlines minimum requirements that the pension funds must comply with. They are allowed to offer better benefits in their regulations. For example, they can regulate an earlier or later start to retirement. Many have done this. However, the minimum age for “retirement” is always 58.
If you take early retirement, your pension will be reduced – the earlier you retire, the more it will be reduced. Conversely, your pension will be increased if you retire after the normal retirement age. In this case too, the supplement is based on the number of years you have deferred. The pension fund calculates the supplement actuarially. Incidentally, the deduction and supplement differ depending on the fund. Please note that you can only defer your pension if you continue to work.
The AHV21 reform will bring improvements for many 2nd pillar policyholders. What a few people benefit from today with some insurance companies will become standard for everyone in future. We take a look at the changes.
Uniform reference age of 65 for men and women for a full pension fund pension
The AHV21 reform is expected to come into force on January 1, 2024. It will bring the same reference age of 65 for women and men and other changes. The reference age of 65 applies to both the AHV and the mandatory occupational pension scheme (BVG). Men and women are therefore entitled to their full (i.e. unreduced) pension in both pillars when they reach the reference age. Pension funds can continue to allow a lower age than 65 in their regulations. However, the minimum age remains 58 as before.
Employers pay longer contributions for women
Retirement age 65 for men has long been the standard for pension funds. It applies to 94 percent of the funds. Under current law, the retirement age of 64 only applies to women in the mandatory scheme. Pension funds are free to set the retirement age in the extra-mandatory scheme. Around a third of private pension funds have introduced a retirement age of 65 for women. In the case of public funds, the figure is almost two thirds. This is shown by the latest comprehensive pension fund study.
The new mandatory reference age of 65 means that all women will achieve higher retirement assets. This will increase their pension by 4 to 5 percent. According to the rules of occupational pension provision, your employer contributes at least half of the higher retirement assets. Because of the higher reference age, the boss pays more into the pension fund account for two out of three women employed under private law.
A flexible start to retirement is now possible for everyone
Today, many pension funds voluntarily offer options to flexibly structure the start of your pension. The answer to the question “When will I receive my pension fund pension?” cannot therefore be answered unequivocally today. It depends on your pension fund and its regulations.
But the framework can be clearly defined. In practice, over 70 percent of insured persons are currently subject to pension regulations that allow retirement from the age of 58 and deferral until the age of 70. In future, all pension funds will have to offer early withdrawal from the age of 63 and deferral until the age of 70. These are the same age limits that will be introduced in the AHV. AHV21 will therefore result in harmonization.
Early withdrawal of pension fund pension from 63 at the latest for all
As with the AHV, every pension fund must in future allow early withdrawal of retirement benefits from the age of 63. If you want to draw your pension in full before then, you must also stop working completely for the employer whose pension fund pays the pension. This requirement does not explicitly exclude part-time work for other employers. For example, you can retire from your main employer and continue or take up part-time work.
Pension fund pension can be deferred until 70
Your pension fund must now offer you a deferral of retirement benefits until the age of 70. However, such a deferral is only possible if you continue to work. From the age of 65, you are no longer obliged to make pension fund contributions under the BVG, even if you defer your pension. However, your pension fund may allow you to pay contributions beyond the reference age and thus further increase your pension.
Partial retirement enables a smooth transition to retirement
Some pension funds already offer their policyholders retirement in stages. In future, all of them will have to offer this. The minimum regulation in the BVG is the same as in the AHV: you can first draw part of your retirement benefit, increase it once and finally draw the full pension. You can then draw your pension fund pension in up to three stages. The regulations may allow even more steps. However, in the case of a lump-sum withdrawal or a mix of pension and lump sum, no more than three steps are permitted.
For example, at 63 you can reduce your workload from 100% to 80% and draw a partial pension of 20%. At 65, you reduce your workload further to 40% and increase your partial pension to 60% accordingly. Because you enjoy your job, you train your successor a little longer and defer your pension. You finally draw your full pension one year later and retire completely at 66.
Deferral of vested benefits above reference age no longer applies from 1.1.2030
Until now, you have been able to defer the withdrawal of your vested benefits for up to five years beyond the normal retirement age. This applies even if you are no longer gainfully employed. This will change with the AHV21 reform. You can only defer beyond the reference age if you actually continue to work. You can find out more in this article.
Summary “When will I receive my pension fund pension?”
Today, the retirement age for occupational benefits is generally 64 for women and 65 for men. With many pension funds, early retirement is possible from the age of 58. The AHV21 reform makes the start of retirement even more flexible. All insurers are obliged to offer early withdrawals from 63 at the latest and deferral until 70. All pension funds will also have to offer early retirement with a partial pension in future. So in future there will be more freedom in the pension fund for your start to retirement.
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