Your employees

Retirement

«My employee will soon retire. What arrangements do I need to make regarding insurance and finances? How can I help my employee make the transition to retirement?»

Pensionierung

More and more baby-boomers born in the 1950s are now reaching retirement age. One day, your employee will also be ready to retire. What does retirement mean for your employee? And what role do you, as the employer, play in this transition process?

Normal retirement age

In Switzerland, the normal retirement age is 65 for men and 64 for women. But many people do not realise that the employment relationship does not end automatically when an employee reaches the normal retirement age. An open-ended contract continues to run until either the employer or the employee decides to terminate the employment relationship.

Employees may opt for early, late or partial retirement. The earliest possible retirement age is 58. The receipt of retirement pension benefits may be postponed for one to five years after reaching the normal retirement age. You can find more information on the flexible retirement age at www.ch.ch.

Initial discussion

Employees often find it hard to think about their upcoming retirement. The feeling of no longer being needed, the loss of colleagues, and the end of daily work life – these and other factors can lead to uncertainty or even anxiety. Don't leave your employees alone with these concerns. Talk to them in good time about their perspective and feelings concerning their upcoming retirement.

Tips for a successful conversation:

  • Take the time necessary and listen carefully to your employees.
  • If they are worried about their retirement, show understanding and encourage them.
  • Discuss possible plans for the future with them.
  • Make sure that you fully inform them of the specific assistance you can offer as their employer (advice on financial planning, AHV pensions, pension funds, etc.).

Retirement preparation checklist

Time before retirement Tasks
10 to 15 years
  • Prepare a financial plan and continually update it
  • Calculate the manageability of a mortgage after retirement
  • Examine the financial feasibility of early retirement
5 to 10 years
  • Handle tax planning
5 years
  • Adapt the investment strategy and protect assets from possible losses
  • Decide whether to receive pension fund benefits in the form of a "pension or a lump sum" (Pillar 2)

    Pension funds generally pay out Pillar 2 benefits in the form of a pension. Under certain conditions, retirees can receive all or part of their retirement benefits in the form of a lump sum. This is determined by the pension fund's rules of procedure. Those choosing to have assets paid out to them can freely dispose of these assets and base the amounts they receive on their own needs. Any portion remaining in the event of death can also be inherited.

    Retirees who receive their retirement benefits in the form of a pension are guaranteed the agreed retirement pension for the rest of their lives.

    Those opting for a pension need not declare this to the pension fund. However, those who choose lump-sum payment must declare this to the pension fund by the deadline according to the fund's rules of procedure.
  • Receiving private pension benefits (Pillar 3)

    If your employees have Pillar 3 assets, they may receive these assets in the form of a single lump sum. This is possible no earlier than five years before reaching the normal retirement age, and no later than the end of the year in which the AHV pension takes effect. Employees who can show that they continue to be employed may postpone the payment of Pillar 3 benefits. However, this is only possible up to five years after the start of the normal retirement age.
3 years
  • Often the last opportunity for pension fund purchases
3 months to 1 year
  • Register for the receipt of AHV pension benefits (Pillar 1)

    Employees are entitled to their pensions on the first day of the month after they have reached the normal retirement age. Please note: AHV pensions are not paid out automatically. Employees must register their entitlement in writing with the compensation office that received their most recent contributions.

    The entitlement must be registered with the responsible compensation office at least three months before the start of the normal retirement age. The compensation office needs this time to prepare the necessary information for calculating the pension.
0 to 1 year
  • Settle inheritance matters and make sure surviving dependents are protected

Impact of retirement on your Helsana insurance

Illness

When employees reach the normal AHV retirement age and their employment ends, the insurance coverage for their daily sickness allowance expires automatically. Medical expenses are handled as usual via their private health insurance.

Accidents

After the end of the employment relationship with your employees, your company continues to insure them against accidents for 30 days. Employees may opt to prolong this insurance coverage by means of extended insurance coverage (PDF, 89KB) for a maximum of 6 months.

When withdrawing from the company's accident insurance scheme, or upon the expiry of any extended insurance coverage, employees must insure themselves against accidents within the framework of the basic insurance provided by their health insurer. Accident insurance through the health insurer is compulsory for all those who are not collectively insured against accidents by their employers.

Prevention

Are more and more employees retiring in your company? Are you worried about the loss of crucial expertise and unsure how to handle succession planning? Then just turn to our experts in occupational health management. We can advise and assist you on an individual basis, working together with you to find the right solution for your company. You can find more information at Helsana for companies, Health Management division.