A historic shift in retirees’ choices
For the first time in 2023, we are witnessing a reversal in the situation: more people are choosing to receive their 2nd pillar in the form of capital rather than a monthly pension. The figures speak for themselves:
- 41% of new retirees have opted for lump-sum payment only
- 40% have opted for a monthly annuity
- 19% preferred a mix of both options
The gender gap is a cause for concern
Let’s talk hard numbers. In 2023, the difference between men’s and women’s benefits remains significant:
For monthly annuities :
- Women: 1,198 francs (median)
- Men: CHF 2,058 (median)
For lump-sum payments :
- Women: 76,365 francs (median)
- Men: 190,000 francs (median)
But why such a difference? It’s no coincidence. Women’s career paths are often marked by career breaks and part-time work, mainly for family reasons. As domestic and family work, which is largely undertaken by women, is unpaid, it is not included in the calculation of pension benefits.
Age of withdrawal: a determining factor
Of particular interest is the impact of the age at which you decide to draw down your capital. The highest amounts are observed among those who withdraw their assets after the legal retirement age:
- Women: CHF 91,472 (median)
- Men: 190,188 francs (median)
Early withdrawals are less advantageous, with medians of CHF 66,253 for women and CHF 169,472 for men.
What this means for you
If you’re approaching retirement, these trends raise some important questions:
- The choice between annuity and capital is not a trivial one, and deserves careful consideration.
- The timing of your withdrawal can have a significant impact on the amount of your capital.
- Women, in particular, need to anticipate and plan ahead to compensate for potential career interruptions.
The importance of personalized planning
Faced with these complex choices, you’re not alone. Argos Prévoyance SA puts its expertise at your disposal to help you make this crucial decision. Our advisors can :
- Analyze your personal and professional situation
- Calculate the tax impact of different options (annuity vs. lump-sum)
- Simulate different retirement scenarios
- Evaluate the advantages and disadvantages of each option based on your family and asset situation
- Optimize your retirement timing to maximize your benefits
Given the importance of these decisions, which will affect your entire retirement, don’t leave anything to chance.
At Argos Prévoyance SA, our experts will provide you with a complete, personalized analysis of your situation. Annuity or lump-sum? Early or deferred withdrawal? Tax implications? Our advisors work with you to examine all the options and their practical implications for your future. Thanks to our in-depth expertise, we can help you make the most advantageous decision for your unique situation.
Note: These data come from a report by the Swiss Federal Statistical Office (FSO) and concern only new benefits granted in 2023.
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