Are you working in Switzerland but live in France? Please note, your retirement will not follow a classic path. Legal age, cumulation of pensions, taxation … Here is all that a cross -border owner must know to avoid unpleasant surprises when hanging up.
Working in Switzerland while living in France is often the assurance of an attractive salary. But when retired, the charm of the border fades in the face of a dreaded question: what regime should be compared to, and how not to lose financially?
Between the legal starting age, the modalities of cumulation of pensions and the complexity of the system with three pillars on the Swiss side, it is better to go about it early. Here’s what you need to know To serenely anticipate his retirement as a Swiss cross -border worker.
Legal age and retirement conditions France / Switzerland
On the French side, since the reform of 2023, the legal retirement age is set at 64 years. But it can be lowered in the event of a long career, disability or arduous work. To touch A full -rate retirementyou must have validated a minimum number of quarters, variable according to your year of birth.
In Switzerland, the law sets the retirement age at 65 for men and 64 years for women. It is possible to anticipate your departure, with a 6.8 % discount per year. To claim a pension, only one year of AVS subscription is enough.
Note: The two countries regularly reform their systemand new developments are expected soon in France. It is therefore advisable to remain informed of any legislative update.
How does Swiss retirement work with the 3 pillars?
The Swiss system is based on three complementary pillars which each provide a specific role in the constitution of retirement.
First pillar: AVS (old age and survivors insurance)
Established in 1946, this compulsory pillar aims to cover retired vital needs. It operates by distribution, assets funding pensioners from retirees. Anyone from the age of 17 is automatically affiliated there as soon as they work.
The contribution is shared between the employer and the employee. As a cross -border owner, you are subject to it as soon as you work in Switzerland.
Second pillar: LPP (Professional Provident)
Coming into force in 1985, the LPP aims to maintain the standard of living. Compulsory for any employee earning more than 21,510 CHF per year (threshold 2021), this pillar works by capitalization: contributions are placed in an individual account.
The amount depends on:
- the employee’s age,
- his salary,
- The provident plan defined by the employer.
It is possible to buy missing years to increase your future rent.
Third pillar: Private retirement savings
This is a voluntary personal savings system. There are two formulas, 3a and 3b:
- Pilier 3A : reserved for workers contributing to the 1st and 2nd pillars. Funds can only be withdrawn from certain conditions (real estate purchase, departure from Switzerland, independent activity …). The withdrawal is imposed between 5 and 7 % depending on the cantons.
- Pilier 3B : more flexible, it does not require a contribution to other pillars. Free withdrawal, without taxation at the exit, but must be declared in France.
This third pillar improves your pension in the event of shortfall on the first two.
Cumulative pensions and taxation: what any cross -border should know
Good news for cross -border workers: French and Swiss pensions can be combined. Each state pays the share corresponding to the periods worked on its soil. These periods are aggregated for the calculation of the total duration of activity, but the amount of pensions remains distinct.
Some important details:
- French retirement is paid by the usual funds according to acquired rights.
- Switzerland pays the share of the AVS directly to the insured, even if it resides in France.
- The pension resulting from the second pillar is generally transformed into a rent, but can also be paid into capital, according to the terms provided for by the contract.
- Revenues from the 3rd pillar, depending on the formula chosen, can offer an interesting tax advantage, in particular via the deduction of payments in taxable income.
Be careful however: leaving Switzerland or changing professional activity can lead to obligations to maintain contribution for the 3rd pillar. Carefully check your contract.
