The AHV pension is not automatically paid out as soon as you retire. You have to inform the AHV compensation office of your intention to draw your AHV pension.
If you've reached the statutory retirement age and have paid in your AHV contributions, you're entitled to an AHV pension. However, it will not be paid out to you automatically. If you want to draw this pension, you should submit your application to your AHV compensation office around three to four months before reaching retirement age. This is because it can take some time for the compensation office to gather the required documentation and calculate the amount of your pension.
The statutory retirement age is 64 for women and 65 for men. From that age, you are entitled to a full pension of a maximum of CHF 2,340 per month (as at 2014). If you decide to draw your pension one or two years before reaching statutory retirement age, your pension will be reduced for the entire duration you draw it. If you decide to delay drawing your pension for up to five years, your pension will be higher for its entire duration.
Drawing your pension early
You can draw your AHV pension a maximum of two years early, i.e. women can draw it at 62, men at 63. For every year that you draw your pension early, your statutory pension is reduced by 6.8%. This means that if you draw it two years early, it will be reduced by 13.6%.
Deferring your pension
You can also defer your AHV pension for up to five years, in which case your statutory pension will increase by 5.2% in the first year and, if you continue to defer drawing it, by up to a maximum of 31.5%.
Do you have any questions regarding your retirement and on drawing your AHV pension early or late? You can find out more from the AHV information sheet. Or you can contact the experts in our Centre for Pension Planning, who deal with retirement-related questions on a daily basis. They will be happy to share their expertise and comprehensive advice with you.