Understanding regional preferences and their financial impact.
The second pillar, or occupational pension, is a key element of the Swiss retirement system. It allows workers to supplement their income in retirement. However, a recent Swisscanto study reveals significant differences in how the Swiss choose to receive these benefits. In German-speaking Switzerland, the trend is predominantly to withdraw the capital, whereas in French-speaking Switzerland, the preference generally leans towards the annuity.
According to Swisscanto data, in 2025, benefits in the form of capital surpassed those paid as annuities nationwide for the first time. In German-speaking Switzerland, 45% of new retirees chose to withdraw their capital, compared to only 29% in French-speaking Switzerland. This divergence may reflect cultural and economic differences between the regions.
Choosing between annuity and capital is a crucial decision as it can have significant impacts on long-term financial security. Opting for an annuity offers stable income security but may be less flexible. On the other hand, withdrawing in capital allows for greater management freedom but also carries risks, notably the risk of depleting resources too quickly.
The choices made at retirement are influenced by several factors, such as family situation, other income sources, and the need for immediate liquidity. A mixed option, combining annuity and capital, is also possible and appeals to a significant proportion of retirees, particularly in French-speaking Switzerland.
These choices should not be taken lightly and require thorough consideration. This is where Alp Conseils comes in. As a specialist in financial planning, we help you navigate these complex decisions to ensure your future financial security. Contact us to discuss further.