Workers beyond retirement age in Ticino: +220% in 20 years

Context

In brief

• In 2025, 220,000 Swiss workers were over 65 years old
• The share of employed over 64 has increased from 2.1% to 4.5% in 20 years
• 12% of those over 65 are professionally active

Key facts

• What: Increase in workers of pensionable age
• When: From 2005 to 2025
• Where: Switzerland, with impact on Ticino and cross-border workers
• Who: Federal Statistical Office (UST) and Awp Agency
• Amount: 220,000 workers over 65 in 2025 vs 87,000 in 2005

In 2025, around 220,000 people in Switzerland continued to work after reaching the ordinary retirement age. This data, which emerges from an analysis by the Awp agency on the data of the Swiss Labor Force Survey (RIFOS) of the Federal Statistical Office (UST), represents more than double the 87,000 recorded in 2005. The share of workers over 64 among all employees has increased from 2.1% to 4.5%, with one in twenty workers being at least 65 years old.

The demographic transformation

The trend reflects the demographic transformation of the country. The so-called baby boomers, born during a period of strong population growth, are entering the post-retirement age group, making the group of over 64 numerically larger. However, general behavior is also changing: more and more people choose to remain active in the labor market even after formal retirement. Currently, 12% of people aged 65 and over are employed, double the 7% recorded in 2005.

Forms of employment

The phenomenon affects both men and women similarly. Among those who continue to work, more than half are self-employed and the vast majority work part-time. This change has significant implications for the labor market, especially in regions like the Canton of Ticino, where the presence of cross-border workers is high.

Impact on cross-border workers

For cross-border workers in Ticino, the decision to continue working beyond 65 can have tax and pension implications. It is essential to understand the implications of Swiss laws, such as AHV and LPP, and how they interact with the Italian system, especially in terms of double taxation and returns.

What to do if you decide to continue working

If a cross-border worker decides to continue working beyond 65, it is important to follow some steps: 1. Consult a tax expert: To understand the implications of double taxation and how to optimize returns. 2. Check AVS and LPP contributions: Ensure that the necessary contributions are continued to maintain pension rights. 3. Update the work permit: If necessary, renew the G permit or other required documents. 4. Evaluate insurance coverage: Check if it is necessary to adjust health insurance policies, such as LAMal, to cover any new risks related to age.

Comparisons and scenarios

Comparing the current situation with that of 20 years ago, it is clear how the Swiss labor market is evolving. The choice to continue working beyond 65 is becoming more common, and this trend could have a significant impact on future pension and tax policies. For cross-border workers, it is essential to be well informed to make conscious decisions.

Comparative tables

Operational details

Analysis of implications for cross-border workers

The increase in workers of retirement age in Switzerland has several implications for cross-border workers employed in Ticino. In particular, it is important to consider the tax and pension aspects, especially in terms of double taxation and returns.

Double taxation and returns

Double taxation is a crucial issue for cross-border workers. In Switzerland, cross-border workers are subject to withholding tax, which is deducted directly from their salary. However, it is possible to benefit from bilateral agreements between Italy and Switzerland to avoid double taxation. It is essential to consult a tax expert to understand how to optimize returns and minimize the tax impact.

AHV and BVG

The AHV (Old-Age and Survivors' Insurance) and BVG (Occupational Pension Provision) are two fundamental pillars of the Swiss pension system. For cross-border workers, it is important to continue paying AHV contributions even after the age of 65 to maintain pension rights. The BVG, on the other hand, is a professional pension system that can offer additional benefits, but it is necessary to verify the specific conditions of your employment contract.

Insurance coverage

With age, health risks also increase. It is therefore important to check whether your health insurance policy, such as the LAMal (Mandatory Health Insurance), adequately covers your new needs. In some cases, it may be necessary to adjust the coverage or take out supplementary policies.

Procedures to continue working

If a cross-border worker decides to continue working beyond the age of 65, there are several procedures to follow: 1. Renewal of the work permit: Check if it is necessary to renew the G permit or other required documents. 2. Update of pension contributions: Ensure that you continue to pay AHV and BVG contributions. 3. Consultation with a tax expert: To optimize the tax situation and benefit from any bilateral agreements. 4. Verification of insurance coverage: Adjust health insurance policies according to new needs.

Future scenarios

The trend of continuing to work beyond the age of 65 is set to grow. This could have a significant impact on future pension and tax policies. For cross-border workers, it is essential to be well informed to make informed decisions and plan their future adequately.

Comparison with the previous situation

20 years ago, the share of workers over 64 was 2.1%. Today, this percentage has doubled, reaching 4.5%. This change reflects not only the demographic transformation but also a change in people's behavior, who increasingly choose to remain active in the labor market even after formal retirement.

Comparative tables

Useful planning tools

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

Key points

Concrete actions for cross-border workers

If you are a cross-border worker in Ticino and are considering continuing to work beyond the age of 65, here are some concrete steps to follow:

1. Consult a tax expert

Double taxation is a complex issue, but with the help of a tax expert, it is possible to optimize returns and minimize the tax impact. A consultant can help you understand how to benefit from the bilateral agreements between Italy and Switzerland and plan your tax situation effectively.

2. Update your pension contributions

It is essential to continue paying AVS and LPP contributions even after the age of 65 to maintain your pension rights. Check with your employer or a pension consultant to adjust your contributions according to your specific situation.

3. Renew your work permit

If necessary, renew your work permit, such as the G permit, to continue working legally in Switzerland. Make sure you have all the documents in order and respect the deadlines.

4. Verify your insurance coverage

With age, health risks increase. Verify if your health insurance, such as LAMal, adequately covers your new needs. You may need to adjust the coverage or subscribe to additional policies to ensure complete protection.

5. Plan for the future

Planning for the future is essential for making informed decisions. Consider your financial, pension, and health needs and plan accordingly. A financial consultant can help you create a personalized plan to ensure a peaceful future.

Useful tools

To help you manage your situation effectively, you can use various tools available on the Frontaliere Ticino website:

• Salary calculator: To estimate your net income after taxes.
• Insurance comparator: To find the health insurance policy that best suits your needs.
• Guide to double taxation: To understand how to optimize returns and minimize the tax impact.

Final CTA

If you need further information or assistance, do not hesitate to contact us. We are here to help you navigate the complex world of cross-border work and ensure that you can enjoy all the benefits provided by law. Use our salary calculator to estimate your net income and plan your future effectively.

Source: tio.ch