Lump sum or pension calculator
One of the biggest financial decisions of your life: lifelong pension or one-off lump-sum withdrawal from your pension fund? Compare both options with your own numbers – including taxes, returns and your break-even age.
For both options
Only for the pension
For the mandatory BVG part the legal rate is 6.8 %. Comprehensive («enveloping») funds apply a lower blended rate to the entire savings – currently typically 5 to 5.5 %. Your rate is shown on your pension fund statement or in the regulations.
For an exact figure use the official FTA tax calculator with your expected retirement income.
Only for the lump sum
Tip: Staggering withdrawals over several years (e.g. pension fund and Pillar 3a separately) breaks the progression and lowers the tax.
Pension vs. lump sum: total value over time
How this calculator works: Both options pay you the same amount per year – the net pension. The pension is retirement savings × conversion rate, taxed as income at your rate. The lump sum starts with the savings minus the one-off withdrawal tax; the rest is invested at the given return and the same net amount is withdrawn each year (at the start of the year). The break-even age is the point at which this capital would be used up.
Assumptions & limits: nominal values without inflation (pension fund annuities are usually not indexed), no wealth or income taxes on the capital (use a net return), AHV, mixed options and survivors' pensions are not modelled. Non-binding model calculation – no tax, pension or investment advice.
Tip: Use the withdrawal plan calculator to plan the capital drawdown in detail and the pension buy-in calculator to check whether a buy-in pays off before retirement.
Frequently asked questions about pension or lump sum
Pension or lump sum – which is better?
There is no one-size-fits-all answer. The pension gives you a guaranteed, lifelong income – ideal if you expect a long life and value security. The lump sum is often more tax-efficient, flexible and can be passed on to your heirs, but you carry the investment risk yourself. Key factors: health, marital status, other income, inheritance plans and your investment experience. A mixed approach is often sensible: cover fixed costs with the pension, withdraw the rest as capital.
How are the pension and the lump sum taxed?
The pension fund annuity is taxable as income at 100 % for life – together with your AHV state pension. The lump sum is taxed once at a reduced rate, separately from other income: the federal tax applies one fifth of the standard rate, and cantonal rates vary widely (usually 4 to 10 % depending on canton and amount). Afterwards the capital counts towards your taxable wealth and the returns on it are taxable.
Can I combine pension and lump sum?
Yes. By law you are entitled to withdraw at least a quarter of your mandatory BVG retirement savings as a lump sum. Many pension funds allow considerably more – often 50 or 100 %. A proven strategy: cover fixed costs with the pension and AHV, withdraw the rest as capital and use it flexibly.
What happens to the pension or the capital when I die?
With the pension, your spouse usually receives a survivor's pension of 60 % of your old-age pension – the rest of the capital stays with the pension fund. With the lump sum, any unused money becomes part of your estate and goes to your heirs.
By when do I have to decide on the lump-sum withdrawal?
Each pension fund sets its own rules: depending on the regulations, the registration deadline ranges from one month to three years before retirement. Check your fund's regulations early. Also important: after voluntary pension fund buy-ins, a 3-year blocking period applies – capital withdrawn within this period leads to the tax deduction being revoked.
See your real pension situation
Geldfuchs runs pension vs. lump sum with your real numbers – together with AHV, Pillar 3a and private assets. So you see what your retirement will really look like.
🦊 Join waitlist →