Capital or annuity? A decision you make only once.
Many pension funds need your choice months — sometimes years — before retirement. See what each option means for your income, your partner and your taxes, explained by a banking economist.
- Income for life versus flexibility and inheritance
- Partner and survivor benefits compared
- Lump-sum tax versus annuity tax, for your canton
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How long would the capital last?
Compare the annuity with taking the capital and paying yourself the same amount every year.
The legal minimum of 6.8% applies only to the mandatory part. Many funds apply a lower overall rate — your pension certificate shows yours.
- Taking the same amount yourself, the capital lasts until
Before tax. The annuity is paid for life and, depending on the fund, partly continues to a surviving spouse; capital remains yours and can be inherited, but can run out. Lump sums are taxed once at a reduced rate, annuities as income. Your fund’s regulations decide the details.
Three things decide the outcome
Your fund’s regulations
Conversion rate, the deadline for choosing, partial capital options and survivor benefits.
Your household
Your partner’s age and income, other pensions, health and how much certainty you want.
Tax in your canton
Lump sum versus annuity, and staggering withdrawals of 3a accounts and pension capital over several years.
“Twenty years inside banks, insurance and real estate taught me where clients lose money without noticing. My job is to show you — clearly, and before you sign.”
“He takes the time to clearly explain each investment option, popularizing sometimes complex concepts to make them accessible to all.”Nicolas Lecocq · client review
What people ask before booking
Can I take part capital and part annuity?
Most funds allow it, at least for part of the mandatory capital. The mix is often the best answer — and it depends on your fund’s rules.
When must I decide?
Each fund sets its own deadline, often months or years before retirement. Check your regulations now — after the deadline, the choice is gone.
What about my 13th AHV pension?
From December 2026 the AHV pays a 13th pension each year. It improves pillar 1 but does not change the capital-or-annuity question in pillar 2.
Is the first call really free?
Yes. Thirty minutes by video or phone, no documents, no obligation. If there is nothing worth doing, you will hear that too.