'With My Pension Money I Can't Live In Switzerland'

(MENAFN- Swissinfo) An ever growing number of retirees in Switzerland are withdrawing their pension capital and emigrating to cheaper countries – some out of necessity, others by choice. This content was published on March 26, 2025 - 11:00 6 minutes Oscar Acciari, Falò,, RSI

• Deutsch de ((Von meiner Rente kann ich in der Schweiz nicht leben)) Read more: ((Von meiner Rente kann ich in der Schweiz nicht leben)
• Français fr ((Avec l'argent de ma retraite, je ne peux pas vivre en Suisse)) Read more: ((Avec l'argent de ma retraite, je ne peux pas vivre en Suisse)
• Italiano it “Coi soldi della pensione non riesco a vivere in Svizzera” Original Read more:“Coi soldi della pensione non riesco a vivere in Svizzera

“I'm 65 years old. To stay here, I could do a few hours of work to get by – maybe in catering, if I can find something. I decided to withdraw my pension fund capital because, with the my state pension [old-age and survivors insurance pension (OASI), or first pillar] plus my occupational pension [second pillar], I wouldn't have managed. I would have received roughly CHF2,400 a month. Now I'll receive around CHF1,870 a month from the OASI state pension and that's it, plus the pension capital I've withdrawn. I'll try to use as little of it as possible – to leave something for my children.”

These are the words of Marcello Castelli, who retired four months ago. He shared his story with Swiss public broadcaster RSI. He used to work as a waiter, a job he still does from time to time to supplement his income.

When capital is modest and you think of your children

The capital that Marcello has built up over the years in his second pillar is modest – just over CHF100,000 ($113,482). A divorce and gaps in contributions, due to the seasonal nature of his work, have taken their toll. Even with a small pension from his occupational pension, he would only have reached the basic minimum. Before retiring, Marcello already struggled to make ends meet despite taking on extra jobs.

“Some people are lucky enough to have full-time, year-round employment. But there are many restaurants and hotels that close in winter – canton Ticino is seasonal in terms of tourism. So I've often had to rely on unemployment benefit money... and when you're not paying into the second pillar, it's tough when retirement comes,” he tells RSI.

Pensioners who say they're forced to emigrate

Marcello has three children who live in Ticino. But due to his financial situation, he has decided to move to Italy in a few years. He explains:“I'm originally from the Apulia region [in southern Italy]. I've lived in Switzerland for 45 years. The plan is to go back. I have this money in the bank. I can live comfortably with €1,200 a month down there. I wouldn't need to tighten my belt. My heart is here, because my children are here. I'm sorry to leave – I just don't know if I can carry on. I feel forced to go.”

A noticeable trend in the catering industry

The trend towards withdrawing pension fund capital is particularly strong in the catering industry, as revealed by an RSI TV report.

Patrick Nasciuti, head of Gastrosocial – one of the largest pension funds in Switzerland, with around 22,000 affiliated companies and 200,000 insured employees – notes:“The capital withdrawal trend has increased in recent years. We see peaks of up to 80%. We're definitely one of the funds with the highest withdrawal rate. I think it's because when someone sees that their monthly pension will only be CHF300 or CHF400, they prefer to withdraw the capital, even if it's a small amount – and perhaps move abroad.”

Only 40% of pensioners opt for monthly pension

In general, the trend towards withdrawing your second pillar is on the rise in Switzerland. In 2023 (latest available data), 41% of new pensioners withdrew all of their capital, 19% opted for a partial withdrawal and part pension, and only 40% chose to receive a full monthly pension from their second pillar alongside their OASI monthly state pension.

Gabriele Pinoja, co-owner of one of Ticino's largest insurance brokerage firms, explains:“Having CHF200,000 in pension capital equates to a monthly pension of around CHF1,000 which, added to the OASI, is unlikely to be enough to live here. I'd say it's almost impossible. In the cases I've seen in my many years working in this field, people have had to leave Switzerland – unfortunately forced to move somewhere with a lower cost of living. Or they've had to keep working – doing odd jobs, part-time work – just to get by.”

People also go abroad with larger pension capital

Some people with pension capital of over CHF600,000 also prefer to withdraw it rather than receive a monthly annuity. That's the case for Roberto Crivelli, a former employee at Swiss Federal Railways Cargo, who recently ended his career early. He and his wife Giovanna have decided to move to Fuerteventura, Spain, where her brother lives.

“Switzerland has become a country for the rich,” says Roberto.“It's just too expensive. I don't know where it's heading. There are constant expenses... health insurance premiums go up every year.”

But not everyone moves out of necessity. Some relocate abroad as part of a life project – seeking new experiences, even if they remain emotionally connected to Ticino. That's true for Dario Trapletti, former deputy mayor of Terre di Pedemonte and an amateur football coach in Ticino. Over four years ago, he moved to Olhão in southern Portugal with his partner Lara.

“We moved to Portugal for lifestyle reasons,” he explains.“We were stressed and fed up. We wanted a change. We opened a bed and breakfast, a small hotel. We invested in this project by selling my house in Ticino. My partner also withdrew her pension fund. We didn't need the pension fund for the business – but it helped.”

Capital in Switzerland – but partly at risk

After a few successful seasons, Dario and Lara decided to stop work and buy a plot of land to build their future home. An opportunity to buy arose before they had sold their B&B. So Dario decided to use the pension capital that he had withdrawn and left in Switzerland; he had invested it partly in risky financial products.

“When I decided to withdraw it, I realised that in just one year I had lost 10% of the CHF200,000-plus I had left after going through a divorce. It was a bitter surprise,” he explains.

Dario is not alone. Many people who withdraw their pension fund capital choose to invest it in various financial and insurance products. But how do you decide what to invest in?

“If that money is essential to your livelihood, I wouldn't just leave it sitting in an account. But I definitely wouldn't invest it in risky products either,” says Gabriele Pinoja.“If I were to invest, it would be in guaranteed products. It's crucial that the adviser clearly explains the risks. And too often, that doesn't happen.”

Translated from Italian using DeepL/amva/sb

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