If your ongoing expenses after retirement are covered by the pension income from the AHV (1st pillar) and the pension fund (2nd pillar), an important part of your financial security in retirement is assured.
As a rule it makes sense, when choosing between a retirement pension and a lump-sum withdrawal, to draw at least enough pension from the pension fund for the expected expenses to be covered in the long term.
With the concept of the needs-covering PF pension you draw at least as much pension from your pension fund that, together with the AHV pension, your ongoing expenses after retirement are covered. If you follow this principle, financial security for covering your needs comes first when deciding between pension and lump sum.
For people with medium to high retirement assets this can mean choosing a combination of pension and lump sum. You then draw exactly as much pension as you need to cover your living expenses and have the remaining part paid out as a lump sum. This concept is also the basis of our portal: Pension AND lump sum.
To determine your needs-covering pension you need some important information about your financial situation in retirement. First you should estimate how high your expenses after retirement are likely to be. Knowing your expected AHV pension is just as important. For this you can order an account statement from your compensation office or – from the age of 60 – request an advance calculation of your AHV pension.
Note: with the introduction of the 13th AHV pension, the AHV retirement pension increases from December 2026 by one additional monthly pension per year.