Retired workers in Switzerland: +220,000 by 2025

Context

In brief

• 220,000 workers over 65 in Switzerland by 2025
• +133,000 in 20 years
• 4.5% of employees are at least 65 years old

Key facts

• What: Number of workers of retirement age
• When: 2005 vs 2025
• Where: Switzerland
• Who: Federal Statistical Office (FSO)
• Amount: 220,000 in 2025 vs 87,000 in 2005

In 2025, around 220,000 people continued to work after reaching the standard retirement age in Switzerland. This figure, which represents a significant increase from the 87,000 recorded in 2005, emerged from an analysis by the news agency AWP of data from the Swiss Labour Force Survey (SLFS) by the Federal Statistical Office (FSO). The share of workers aged 64 and over among all employed people has risen from 2.1% to 4.5%. In other words, today one in twenty workers is at least 65 years old.

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 over-64 age group numerically larger. However, this is not just a demographic phenomenon: more and more people are choosing to remain active in the labour market even after formal retirement. Currently, 12% of people aged 65 and over are in employment, double the 7% recorded in 2005.

Changes in employment forms

The phenomenon affects men and women equally. At the same time, forms of employment are changing: among those who continue to work, more than half are self-employed and the vast majority work part-time. This indicates increasing flexibility in the Swiss labour market, which allows many people to combine work with retirement.

Impact on the Canton of Ticino

In the Canton of Ticino, this trend has a significant impact, especially for cross-border workers who may consider continuing to work beyond retirement age. The proximity to Italy and the job opportunities offered by Switzerland make Ticino an attractive place for those who wish to extend their professional careers. Moreover, the presence of an established community of cross-border workers facilitates integration and continuity of employment for those who decide to remain active beyond the age of 65.

Practical implications

For cross-border workers in Switzerland, continuing to work after the age of 65 can have important implications. For example, it is necessary to consider the impact on pensions, such as AHV and BVG, as well as on health insurance such as LAMal. In addition, it is essential to be aware of tax regulations, particularly with regard to withholding tax and tax returns. The choice to continue working can significantly influence the financial and pension situation, making careful planning essential.

To delve deeper into the tax and pension implications, you can use the tax calculator to estimate the taxes to be paid and the pension calculator to assess the impact on your pension. Additionally, it is useful to consult the specific guides for cross-border workers available on the website to better understand the regulations and opportunities offered by the Swiss system.

Operational details

Trend Analysis

The growth in the number of workers of retirement age in Switzerland is a complex phenomenon that reflects both demographic and cultural changes. The demographic transformation, with the entry of baby boomers into the post-retirement age group, is a key factor. However, people's behavior is changing: more and more individuals choose to remain active in the labor market even after reaching retirement age.

Reasons to Continue Working

There are multiple reasons for continuing to work after the age of 65. Some do so for economic necessity, others to maintain an activity they love, while still others to stay active and socially engaged. The flexibility offered by the Swiss labor market, with opportunities for part-time work and self-employment, facilitates this choice.

Impact on Pensions

Continuing to work after the age of 65 can have a significant impact on pensions. In Switzerland, the pension system consists of three pillars: AHV, BVG, and the private pillar. Working beyond retirement age can increase contributions to AHV and BVG, thus improving future pensions. However, it is important to consider the tax implications, such as withholding tax and tax returns.

Comparison with the Previous Situation

Over the past 20 years, the number of workers of retirement age has more than doubled. In 2005, only 7% of people aged 65 and over were working, while today this percentage has doubled to 12%. This change reflects greater flexibility and adaptability of the Swiss labor market, which offers opportunities even to those who have exceeded retirement age.

Future Scenarios

With the aging population and the transformation of the labor market, it is likely that this trend will continue. More and more people may choose to work beyond the age of 65, either for economic necessity or personal choice. This could lead to a review of pension and tax policies to adapt to this new reality.

Implications for Cross-Border Workers

For cross-border workers employed in Switzerland, continuing to work after the age of 65 can have significant implications. It is essential to be aware of tax and pension regulations, as well as the opportunities offered by the Swiss system. Using tools such as the tax calculator and the pension calculator can help better plan for the future and make informed decisions.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

What to do if you want to continue working after 65

If you wish to continue working after reaching retirement age in Switzerland, it's important to follow some concrete steps. First, you need to inform yourself about pension and tax regulations. This includes understanding contributions to AHV and BVP, as well as tax implications such as withholding tax and tax returns.

Concrete steps

1. Inform yourself about pensions: Consult the specific guides for cross-border workers available on the site to better understand pension regulations. Use the pension calculator to assess the impact on your pension. 2. Consult an expert: Speak with a tax or pension advisor to get personalized advice. This is particularly important for cross-border workers who might have complex tax situations. 3. Plan your finances: Use the tax calculator to estimate the taxes you need to pay and plan your finances effectively. 4. Consider work opportunities: Explore part-time or self-employment opportunities offered by the Swiss job market. This can include searching for flexible jobs that fit your personal needs. 5. Maintain flexibility: Be open to different work options and adapt to the changing needs of the job market. This can include continuous training to acquire new skills and stay competitive.

Useful tools

To best plan your future and make informed decisions, you can use various tools available on the site. The tax calculator can help estimate the taxes you need to pay, while the pension calculator can assess the impact on your pension. Additionally, the specific guides for cross-border workers can provide detailed information on pension and tax regulations.

Conclusion

Continuing to work after 65 in Switzerland is an increasingly common and advantageous choice. However, it is essential to be informed and plan carefully to maximize benefits and minimize challenges. Using the tools available on the site can help you make informed decisions and plan your future better.

Source: tvsvizzera.it