If I advance my pension to 62, would I lose the benefits of the New Frontier Agreement?

The New Frontier Agreement (effective January 1, 2024) regulates the taxation of cross-border work income, not pension income. The exemption of €7,500 (old border guards) or €10,000 (new) applies ONLY as long as you work across borders. From the date of retirement, your annuity from AVS and LPP is taxed according to the double taxation agreement of 9 December 1976, with Italian tax credit in the EC framework of declaration 730. You do not directly lose benefits, but change the applicable tax regime.

How much does the advance of the pension affect the AVS income?

The AVS calculates the pension on the basis of the average income and years of contribution. Anticipating retirement means: (1) fewer years of contributions paid = lower basic income, (2) possible additional percentage reduction for those who retire before ordinary age. There is no fixed figure, but it depends on your specific career and the length of the advance. For an accurate estimate, please contact SECO (AVS Central Clearing Office) with a request for preliminary calculation.

Do I keep the LAMal (health insurance) option right if I have allowed G and retire?

Yes, the right of option for LAMal is a benefit linked to the G permit (border worker domiciled in Ticino, working in Italy). He also remains retired, provided that you retain the G permit. If you move your residence to Italy (and give up the G permit), you lose access to LAMal and are covered by the Italian healthcare system. Evaluate this decision carefully, because it impacts rewards, costs, and access to health services.

How do I handle double taxation when I retire?

The Italy-Switzerland double taxation agreement of 9 December 1976 establishes that pension annuities (AVS, LPP) from Switzerland are taxed in Italy according to declaration 730. In any case, Switzerland applies a federal/cantonal tax on the income received. However, the Swiss payment generates an Italian tax credit in the EC framework, which reduces the overall tax burden. Consult a border agent accountant to fill in the 730 correctly and avoid double payments.

Should AVS supplementary contributions be paid before retiring?

If you have 'empty' periods in your career (unemployment, leave, years abroad without payments), you can make voluntary supplementary contributions to AVS to fill these gaps. Each additional contribution year increases the basis for calculating the annuity. Convenience depends on how many years are missing, your job longevity projections, and the amount of additional income. SECO can calculate whether these contributions are worth paying in your specific case.

Frontier early retirement: 5 common mistakes (cross-border guide)

Di Laura Bianchi · Published on 20 August 2026

Pension planning document with spreadsheet and SECO forms on desk workspace overlooking Ticino-Italy border crossing

Anticipating the pension for border workers Ticino-Italy involves complex choices on AVS, LPP and double taxation. Discover the mistakes to avoid with the New 2024 Agreement.

Context

In a nutshell

New Frontier Agreement from 1 January 2024: exemption €7,500 (old) or €10,000 (new frontier)
AVS + LPP: simultaneous contributions determine advance income, no tax shortcuts
Italy-Switzerland double taxation managed by tax credit (EC framework, 730)

Key facts

What: Early retirement planning for Ticino-Italy border crossers with AVS/LPP/tax impact
When: From 1 January 2024 (New Frontier Agreement in force)
Where: SECO administrations, INPS, Ticino-Italy tax offices, Brogeda/Chiasso/Gaggiolo passes
Who: G Permit Frontiers (Ticino domicile, Italy work) and B Permit
Scheme: Old border guards (pre-17/7/2023): exemption €7,500 until 2033; New: deductible €10,000
Rates: AVS 5.3% employee + employer contribution; LPP 7-18% by age group (from 25 years)

Early retirement for a Ticino-Italy border worker is not a trivial choice. It involves simultaneous decisions on three fronts: the Swiss AVS system, corporate pension through LPP, and tax management in a context of Italy-Switzerland double taxation. With the entry into force of the New Frontier Agreement on 1 January 2024, the taxation rules have changed for those working in Italy and residing in Ticino (G permit) or for Ticino residents working across borders.

The biggest risk is advancing retirement without an integrated view of how this impacts the overall income, contributions

Operational details

Five Common Mistakes in Early Retirement

Border planners often stumble upon the same repeated mistakes, especially when they confuse labor taxation with the social security situation.

Mistake 1: Confusing the New Frontier Agreement with retirement

The New Frontier Agreement (in force from 1 January 2024) regulates the taxation of cross-border WORK INCOME, not pension income. Many frontier workers believe that the exemption of €7,500 (old) or €10,000 (new) also applies to retirement pensions. This is not the case. The income from AVS and LPP is taxed according to different rules, based on the 1976 Italy-Switzerland double taxation convention. Those who anticipate retirement lose the benefit of the deductible as early as the first year of retirement.

Mistake 2: Underestimating the impact on AVH income

The AVS calculates the average pension over the entire contributory career. Anticipating retirement means fewer years of contribution, therefore a lower calculation base. The AVS algorithm also provides for a percentage reduction for those who take retirement before ordinary age, but the technical details vary by case. Those who do not consult SECO (Central Clearing Office) or the AVS office of their canton risk discovering too late that the advance payment is lower than expected.

Mistake 3: Ignore the second pillar (LPP)

The LPP, fuelled by contributions ranging from 7% to 18% depending on age (from 25

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Operational checklist for early retirement

If you are considering an early retirement as a frontier, here is a concrete checklist to avoid the mistakes described above.

Step 1: Contact SECO and check your AVS situation

The AVS Central Clearing Office (SECO) has a section dedicated to border guards. Request an excerpt of your contributory career and a preliminary calculation of the pension under different retirement scenarios. Don't wait for the month of the official application: having the data 12-18 months in advance allows you to plan.

Step 2: Analyze your second pillar (LPP)

If you have an LPP account with a Swiss institution or with the Italian employer (if the Swiss regime applies), request a management report and an income projection at the time of withdrawal. Compare scenarios: Early retirement of 1-2 years leads to measurable income differences, often between 5% and 15% depending on the institution.

Step 3: Fill out a Ticino-Italy tax return

With the help of a Ticino or Italian tax consultant specialized in frontier workers: estimate your pension income (AVS + LPP + any income from parallel work), identify if you remain in the regime of the New Frontier Agreement or if your situation changes, plan how to avoid double taxation using the tax credit (CE framework of the Italian declaration 730). This phase is crucial because it determines whether the

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.

Frequently Asked Questions

If I advance my pension to 62, would I lose the benefits of the New Frontier Agreement?: The New Frontier Agreement (effective January 1, 2024) regulates the taxation of cross-border work income, not pension income. The exemption of €7,500 (old border guards) or €10,000 (new) applies ONLY as long as you work across borders. From the date of retirement, your annuity from AVS and LPP is taxed according to the double taxation agreement of 9 December 1976, with Italian tax credit in the EC framework of declaration 730. You do not directly lose benefits, but change the applicable tax reg
How much does the advance of the pension affect the AVS income?: The AVS calculates the pension on the basis of the average income and years of contribution. Anticipating retirement means: (1) fewer years of contributions paid = lower basic income, (2) possible additional percentage reduction for those who retire before ordinary age. There is no fixed figure, but it depends on your specific career and the length of the advance. For an accurate estimate, please contact SECO (AVS Central Clearing Office) with a request for preliminary calculation.
Do I keep the LAMal (health insurance) option right if I have allowed G and retire?: Yes, the right of option for LAMal is a benefit linked to the G permit (border worker domiciled in Ticino, working in Italy). He also remains retired, provided that you retain the G permit. If you move your residence to Italy (and give up the G permit), you lose access to LAMal and are covered by the Italian healthcare system. Evaluate this decision carefully, because it impacts rewards, costs, and access to health services.
How do I handle double taxation when I retire?: The Italy-Switzerland double taxation agreement of 9 December 1976 establishes that pension annuities (AVS, LPP) from Switzerland are taxed in Italy according to declaration 730. In any case, Switzerland applies a federal/cantonal tax on the income received. However, the Swiss payment generates an Italian tax credit in the EC framework, which reduces the overall tax burden. Consult a border agent accountant to fill in the 730 correctly and avoid double payments.
Should AVS supplementary contributions be paid before retiring?: If you have 'empty' periods in your career (unemployment, leave, years abroad without payments), you can make voluntary supplementary contributions to AVS to fill these gaps. Each additional contribution year increases the basis for calculating the annuity. Convenience depends on how many years are missing, your job longevity projections, and the amount of additional income. SECO can calculate whether these contributions are worth paying in your specific case.