The Swiss pension system aims for the pensions from the 1st pillar (AHV pension) and the 2nd pillar (PF pension) to cover your living needs after retirement. But how much money do you actually need in retirement?
This question is particularly important when you have to decide whether to draw your retirement assets as an ongoing pension until your death or as a one-off lump sum. We help you to realistically estimate your living expenses in old age.
The largest expenses in retirement generally concern general living expenses, housing and rent, insurance and health insurance, transfer payments (e.g. alimony) as well as taxes. To determine your personal living needs, so-called standard budgeting helps. For the main expense areas it draws on comparative and average values of households with a similar income and similar living circumstances.
The enclosed budget calculator lets you estimate your expected living expenses after retirement. The taxes are calculated directly on the basis of your tax domicile and your expected pension income. Statistical comparative values are used for the remaining expense items. The basis for this is the Household Budget Survey (HABE) of the Federal Statistical Office.
The budget calculator takes the following characteristics into account:
- the phase after retirement
- single-person and couple households
- six different income brackets
This results in twelve standard budgets, differentiated by household type and income. The budgets are divided into the main categories general living expenses, housing and rent, insurance and transfer expenses as well as taxes. For the budget estimate, the budget calculator assigns you to the matching standard budget based on your income and household type. The corresponding comparative values for your group are also shown. The tax burden is calculated separately on the basis of your expected pension income and your tax domicile.