Working after 64/65: pension, continuing to work and applying

The ordinary retirement age is 65 for women and men; for women it is rising gradually. You can draw the AHV pension early, draw it ordinarily or defer it.

• Deferral: the pension can be deferred by one to five years; the rate increases for each year of deferral.
• Early drawing: with a reduction, permanently.
• Partial pension: partial drawing is possible if you reduce your working hours.
• Continuing to work without a pension: you continue to pay AHV contributions – and thereby fill contribution gaps.

The decision depends on the salary, the length of employment and the tax situation. A short calculation at the compensation office is worthwhile before you decide.

Even after 65 the rule applies: anyone who works is insured – with particularities.

• AHV contributions: contributions continue to be deducted from the salary, provided you are not entitled to a pension and the salary does not exceed an exempt amount.
• BVG: occupational pension provision ends at the ordinary retirement age; continued insurance is voluntary and possible up to an age limit.
• Accident insurance: remains compulsory, including for part-time work.
• Unemployment insurance: after retirement age there is as a rule no entitlement to daily benefits.

When you continue working after retirement, the salary is renegotiated – often without the former position.

• Working hours: 40 to 60 per cent is usual; clarify whether on-call duty or travel is included.
• Salary: experience is rarely paid in full; negotiate over tasks and responsibility rather than over title.
• Holidays: four weeks by law, often five from the age of 50 – check the contract.
• Fixed term: a fixed-term contract with an option to extend is usual for transition roles.

The normal rules apply to employment relationships after retirement age – with one exception.

• Ordinary notice: periods as in the contract, usually one to three months.
• Automatic end: a contract may expressly end when retirement age is reached – but this must be agreed.
• No protection against dismissal by age: the protected periods in the CO relate to illness, pregnancy and compulsory service, not to age.
• Reference: entitlement to a reference even for short assignments.

The CV gets shorter, not longer: the last 15 years are enough.

• Age details: a date of birth is usual but not compulsory – leave it out if you consider it disadvantageous.
• Bundle experience: summarise earlier positions, present current responsibility in detail.
• Availability: state it concretely – ‘from immediately, 50 per cent, no travel’ is an advantage, not a drawback.
• Further training: courses from the last three years show that you are up to date.

In the interview: questions about age are permissible, but you do not have to answer every one. Answer the question behind it – resilience, willingness to learn, availability.

Anyone who draws salary and pension at the same time must know the tax consequences.

• Progression: salary plus pension increase taxable income – consider deferring the pension.
• Withholding tax: for foreign nationals withholding tax remains relevant, even after retirement.
• Lump-sum withdrawal: a lump-sum withdrawal from the pension fund is taxed separately – the timing is decisive.
• Advice: tax advice before the decision costs little compared with the possible additional burden.

Whoever continues working after 65 has three basic forms to choose from. They differ in protection against dismissal, in social insurance and in the question of who carries the risk:

The second variant is the most common and the least complicated: for both sides the end is plannable. Whoever wants a long-term perspective should instead insist on an open-ended relationship – and raise the question of succession openly.