Drawing or deferring the AHV pension: what pays off?

The AHV can be drawn early from 63 or deferred until 70. Early draw cuts the pension permanently; deferral increases it. When is which variant worth it?

With the AHV21 reform, a uniform reference age of 65 for men and women has applied since 2024. At the same time, flexibility was expanded: the AHV pension can be drawn between age 63 and 70 — two years before the reference age until five years after.

Early draw: collect sooner, permanently less

Anyone drawing the AHV one or two years before the reference age receives the pension earlier — but permanently reduced. The reduction rates:

• 1 year early (from 64): permanently −6.8%.
• 2 years early (from 63): permanently −13.6%.

Example: CHF 2,450 monthly pension at reference age → with 2 years of early draw permanently CHF 2,117 (−CHF 333/month). Over twenty pension years that is a difference of around CHF 80,000.

Deferral: less at first, more forever

Anyone deferring the AHV beyond the reference age receives a permanently higher pension. The official deferral supplements from Merkblatt 3.04 (AHV21):

• 1 year deferral (to 66): +5.2%.
• 2 years (to 67): +10.8%.
• 3 years (to 68): +17.1%.
• 4 years (to 69): +24.0%.
• 5 years (to 70): +31.5%.

The break-even calculation

Break-even for deferral: how long must you live to compensate the foregone pension income of the deferral years with the higher pension? For one year of deferral (from 66, +5.2%): roughly 15 years — i.e. break-even at around 81. For five years of deferral (from 70, +31.5%): break-even at approximately 83.

The FIRE perspective

For early retirees who already have bridge capital, deferral is often attractive: the portfolio is less burdened when the AHV pension starts later but higher. Whoever relies on the AHV to avoid overloading the portfolio chooses early draw — despite the cut.

Important: early draw and deferral are irrevocable. The decision should be made in the context of the overall plan — including Pensionskasse and 3a timing, taxes and life-expectancy assumptions.

The Pillar Zero calculator models the chosen AHV draw age with the official adjustment rates and shows how the decision affects the portfolio year by year.