10 Things to do before retiring – A checklist for a worry-free retirement

1. Assess your financial situation

Before retiring, take a look at your current and future income:

• Calculate your expected AHV and pension fund payments.
• Identify any income gaps between what you receive and your monthly expenses.
• List all assets, including savings, investments, and real estate.
• Consider whether your wealth is structured for long-term stability.

2. Decide between a full pension withdrawal or monthly pension

One of the biggest decisions in retirement is whether to take your pension fund as a lump sum, a monthly pension, or a combination:

• Lump sum: Provides flexibility but requires careful investment.
• Monthly pension: Offers guaranteed income for life but may be less flexible.
• Consider a hybrid approach to balance security and flexibility.
• Understand the tax implications of each option.

3. Plan for long-term financial stability

Ensuring your savings last a lifetime is key:

• Estimate how long your retirement savings will sustain your lifestyle.
• Consider a diversified investment strategy to keep your money working for you.
• Keep an emergency cash buffer to avoid selling investments at the wrong time.

4. Create a withdrawal strategy

Having a plan for how and when to withdraw funds can prevent financial stress:

• Calculate a safe withdrawal rate based on your needs.
• Use tax-efficient withdrawals to minimize your tax burden.

Plan for different spending phases, such as more expenses early in retirement and lower expenses later.

5. Choose the right investment strategy for your retirement

Your approach to investing should shift as you enter retirement:

• Look into the best investment options for pensioners.
• Consider an ETF-based portfolio for low-cost diversification.
• Avoid excessive risk but ensure your portfolio still generates returns.

6. Plan for healthcare costs

Healthcare expenses can increase significantly in retirement:

• Budget for medical expenses not covered by your insurance.
• Consider supplementary health insurance or long-term care coverage.
• Understand how healthcare costs can rise as you age.

7. Review your tax situation

Optimising your tax burden is essential:

• Plan for tax-efficient pension withdrawals.
• Understand how cantonal tax differences affect your retirement income.
• Withdraw funds from pillar 3a accounts strategically to reduce taxes.

8. Adjust your budget for a fixed income

Once you retire, having an overview of your spending habits becomes more important:

• Estimate your monthly expenses and adjust as needed.
• Plan for one-off expenses like home renovations or travel.
• Ensure your income sources align with your spending needs.

9. Secure your estate and legal affairs

Make sure your financial and legal affairs are in order:

• Update your will and power of attorney.
• Ensure your spouse or heirs understand your financial plans.
• Look into inheritance tax and how it affects your estate.

10. Mentally prepare for retirement

Retirement isn’t just a financial transition — it’s a big lifestyle change:

• Plan how you’ll spend your free time.
• Stay socially connected and find fulfilling activities.
• Consider part-time work or volunteering if you want to stay active.

Final thoughts

By following this checklist, you’ll ensure a smooth transition into retirement, with financial security and peace of mind. Whether you're structuring your pension fund, choosing the best investment strategy, or setting up a withdrawal plan, taking these steps will help you enjoy a worry-free retirement in Switzerland.

Would you like personalised support in planning your retirement investments? Selma can help you manage your portfolio efficiently, ensuring flexibility and long-term financial security. 

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