The right result depends less on a miracle product than on the timeline: salary, partial retirement, pension or capital, taxation, and transfer must tell the same story.
For a small business manager, retirement is almost never a single date. They can reduce their activity, remain a director, gradually transfer the business, keep a salary, or still receive dividends. Meanwhile, the AVS, pension fund, and pillar 3a follow different rules and deadlines. Taken separately, each choice may seem reasonable. However, poorly coordinated, these choices can lead to a lasting decrease in pension, a capital withdrawal requested too late, unnecessary tax concentration, or a liquidity gap.
The challenge is therefore to build a common scenario: how much is needed to live, when will the activity actually decrease, which benefits must remain guaranteed for life, and which capitals must remain available?
In short
- The AVS can be received between 63 and 70 years, in full or partially between 20% and 80%. Claiming early permanently reduces the pension; a deferral increases it.
- The LPP heavily depends on the fund's regulations. The deadline to request capital may precede retirement by several months, sometimes more.
- Pillar 3a is available at the earliest five years before the reference age and, if the activity continues, at the latest five years after. Multiple accounts can facilitate a staggered approach.
- For the salaried manager of their SA or Sàrl, the salary contributes to the AVS and the LPP; the dividend does not.
- The plan should be established three to five years in advance, then translated into formal requests according to the deadlines specific to each institution.
1. Start with the status of the manager
The first question is not fiscal: are you self-employed or an employee of your own company? The owner of a sole proprietorship is generally self-employed and is not necessarily insured under the LPP. The manager of an SA or Sàrl is, however, an employee of the company and subject to the corresponding rules. This distinction alters the level of coverage, the options for buyback, and the flexibility of pillar 3a.
The subject must be read with reflection on the sole proprietorship or the Sàrl. For the manager of a capital company, it is also necessary to verify that the arbitration between salary and dividend has not gradually weakened social coverage. A dividend compensates for capital; it does not replace an adequate salary and does not generate either AVS contributions or LPP bonuses.
2. First, determine the income need
Before choosing a pension or capital, it is necessary to establish a realistic retirement budget. Separate the non-negotiable expenses — housing, health insurance, taxes, maintenance — from the flexible expenses. Add a reserve for repairs, family assistance, and health. Then compare this need to guaranteed income: AVS, LPP pensions, spouse's income, and any potential rents.
The balance indicates the function of the capital. It can serve as a bridge during a phased retirement, finance projects, or supplement long-term income. This sequence avoids a classic mistake: choosing capital solely to reduce taxes in the year of withdrawal, without measuring longevity risk or the management burden that will follow.
3. AVS: decide on the timing and percentage
Check the individual account
Request an individual account statement and a pension estimate before making any decisions. A missing year or incorrectly recorded income should be examined as long as the supporting documents are available. The estimate remains indicative, but it allows for scenario comparisons.
In 2026, the reference age is 65 for men. For women, it increases in stages: a woman born in 1962 reaches the reference age at 64 years and 6 months. Women of the transitional generation benefit from special rules that must be simulated individually.
Claim early, defer, or draw a partial pension
The AVS pension can be anticipated as early as 63 — as early as 62 for certain women of the transitional generation — or deferred until 70. According to general rates, a one-year anticipation results in a reduction of 6.8% and a two-year anticipation results in a reduction of 13.6%. Deferring increases the pension: 5.2% after one year and up to 31.5% after five years. These effects are lasting.
It is also possible to receive between 20% and 80% of the pension. This flexibility is useful when a manager reduces their activity rate without immediately leaving the company. It allows, for example, to finance an initial salary reduction while avoiding anticipating the entire AHV. The request for anticipation should reach the compensation fund three to four months before the desired date; anticipation is not granted retroactively. The deferral must be announced in the year following the reference age.
Continue working after the reference age
The combination of an AHV pension and professional income is possible. A threshold of CHF 16,800 per year and per employer generally applies to contributions after the reference age, but the insured can waive it. Contributions paid until the age of 70 can, under certain conditions, improve the pension or fill certain gaps. A new calculation can be requested only once and only takes effect for the future. It must be coordinated separately with any potential deferral.
Starting in December 2026, the 13th AHV pension will also be included in the annual budget. It is not necessarily equal to the pension for the month of December: it corresponds to one twelfth of the old-age pensions actually paid during the year and therefore takes into account any anticipation or partial receipt.
4. LPP: the fund's regulations determine the details
The pension certificate provides a snapshot, but the regulations answer the real questions: minimum age, number of steps, maintenance of insurance after 65, conversion rate of the mandatory part, deadline to choose the capital, spouse coverage, and consequences of a salary reduction. This information must be obtained in writing.
The LPP retirement can in principle begin at 63 years old; the fund can allow a departure as early as 58 years old. It can be deferred until the end of activity, at the latest at 70 years old. A pension can be taken in a maximum of three stages, unless the regulations allow for more; withdrawals in capital are limited to three stages. The reduction of benefits must correspond to a real decrease in activity and salary, documented by the company.
The insured has the right to request at least a quarter of their old-age savings in the form of capital. The fund may allow more, even the total amount. The minimum conversion rate of 6.8% only applies to the mandatory LPP portion; it should not be mechanically applied to the entire amount.
| Option | Main advantage | Point of caution |
|---|---|---|
| Pension | Predictable lifetime income and delegated management | Flexibility and transferability limited according to the regulations |
| Capital | Flexibility, investment, and customizable succession | Investment, longevity, and consumption risks to be assumed |
| Combination | Guaranteed income base and available reserve | Requires precise calibration of budget and taxes |
The trap of making pension buy-ins shortly before a lump-sum withdrawal
A LPP buyback can improve retirement planning and reduce taxable income. But Article 79b, paragraph 3, LPP states that benefits resulting from a buyback cannot be paid out in capital before the expiration of a three-year period. Tax jurisprudence examines retirement planning in a holistic manner: a capital payment within this period may result in the loss of the buyback deduction. Therefore, before any buyback close to retirement, it is necessary to freeze the benefits schedule and check for any possible exceptions.
5. Pillar 3a: prepare for withdrawals as much as contributions
In 2026, a person affiliated with a pension fund can contribute a maximum of CHF 7,258 to pillar 3a. Without a 2nd pillar, the limit is 20% of the net income from gainful activity, up to a maximum of CHF 36,288. The right to 3a assumes income subject to AHV. It can continue for up to five years after the reference age if gainful activity continues.
Since 2026, a first 3a buyback can fill a gap that arose in 2025, under certain conditions. The buyback can cover a maximum of the previous ten years, requires eligibility during the gap year and the year of the buyback, as well as the full payment of the ordinary contribution for the year. This possibility does not eliminate the need for an exit plan.
The 3a capital can be withdrawn no earlier than five years before the reference age. If the holder continues to work, the withdrawal can be postponed for up to five years after. As a general rule, an account or policy is liquidated in one go. Therefore, opening several relationships early can allow for withdrawals over several calendar years.
The staggered approach is not an automatic recipe. In the canton of Vaud, several capital pension benefits received in the same year are added together for taxation; those of spouses or registered partners are also included. Therefore, taxation must be simulated for the canton of residence at the time of each withdrawal, including the LPP, the vested benefits accounts, and the couple's 3a.
6. A five-step coordination calendar
| Deadline | Decisions and controls |
|---|---|
| 5 years before | Private budget, value and transfer of the business, AHV extract, LPP projection, inventory of 3a and vested benefits. |
| 3 years before | Provisional choice of pension/capital, LPP buyback schedule, number of 3a accounts, gradual salary reduction, and future governance. |
| 12 months before | Decisions of the board of directors, modification of the contract and activity rate, capital requests according to the fund's deadline, tax simulation of the couple. |
| 4 months before | AHV application, confirmation of LPP and 3a dates, personal cash flow plan, insurances, and possible power of attorney. |
| At the start | Control of certificates, correct accounting of salary and dividends, updating the budget, and monitoring tax prepayments. |
7. Example: a gradual retirement at 64 years old
Let's imagine a manager of a limited liability company who wants to go from 100% to 60% at 64 years old, then transfer operational management a year later. The first step is to actually reduce her job description and salary. If the regulations allow, she can receive a corresponding share of her pension fund. She then compares this benefit with an anticipated partial old-age pension: since the reduction in the old-age pension is definitive, waiting for the reference age may be preferable if the pension fund and savings cover the transition year.
Her three 3a accounts are not necessarily withdrawn immediately. A first withdrawal can finance the bridge at 64 years old, a second can occur at the reference age, and a third the following year, subject to the continuation of activity and the tax rules of the residence. If she or her spouse also receives a pension fund capital the same year, the tax grouping must be calculated.
Finally, if a pension fund buyback was made less than three years before the planned withdrawal, the scenario must be reviewed. The pension, a deferral of capital, or another source of liquidity can be compared. This example does not provide a universal solution: it shows the order of decisions.
8. Costly mistakes
- Lowering the salary too early. An insufficient salary can reduce contributions and future benefits, while an excessive dividend can be requalified by the old-age pension.
- Confusing work cessation and benefit receipt. Old-age pension, pension fund, and 3a can start on different dates.
- Discovering the fund's deadline too late. The choice between pension and capital can become irrevocable before the retirement date.
- Buying back the pension fund without a schedule. The three-year deadline can neutralize the sought-after tax advantage.
- Consolidate all capital in the same year. The increase in cantonal tax on capital benefits can raise the exit cost.
- Neglect the company after the operational withdrawal. The signature, the board of directors, the transfer of shares, and the residual compensation must remain consistent.
Coordinate before requesting
Delta Conseil compares the private budget, the status of the manager, the compensation, the AVS/LPP/3a certificates, and the taxation of withdrawals. You receive a schedule of decisions and steps, with points that must be validated by the pension fund or the competent authority.
Frequently asked questions
Can I continue to run my business while receiving AVS?
Yes. The AVS pension can be combined with professional income. After the reference age, the contribution exemption and the possibility of a new calculation must be examined based on salary and any gaps.
Salary or dividend: what effect on my retirement?
Salary is subject to AVS and generally serves as the basis for LPP. The dividend does not contribute to any of these rights. The combination must remain economically justifiable and consistent with the work performed.
Is the LPP pension always preferable to capital?
No. The pension protects against longevity risk; capital offers more flexibility and transferability but transfers the investment and consumption risk. A combination is often worth comparing.
How many 3a accounts should be opened?
There is no magic number that applies everywhere. Several accounts facilitate the staggered approach, but the right number depends on the planned capital, age, place of residence, and other withdrawals of the couple.
When should planning begin ?
Ideally three to five years before the first reduction in activity. This allows time to address buybacks, the compensation structure, succession, and the opening of several 3a accounts. Formal requests then follow the deadlines of each institution.
Official sources
- OFAS — Retiring
- AVS/AI Information Center — Retirement Flexibility (memo 3.04)
- AVS/AI Information Center — New pension calculation after the reference age (memo 3.08)
- AVS/AI Information Center — Pension estimation
- OFAS — Old-age provision in occupational pension plans
- Fedlex — Federal law on occupational pension plans, notably art. 79b
- OFAS — The third pillar
- Canton of Vaud — Declare capital benefits
- AVS/AI Information Center — 13th AVS pension
Editorial date : July 24, 2026
Last legal review : September 2, 2026
Warning. The information in this article is general and does not constitute individualized legal, tax, accounting, or financial advice, nor a guarantee of the processing of a file by an authority. Rules, fund regulations, and tax practices may evolve. Any significant decision should be validated in light of the specific situation. Consult the legal notices and the warning of Delta Conseil SA.
