Written by David Rosbotham DipPFS | Financial Planner
At some point, often in your 50s and beyond, the financial questions change. The focus moves away from market performance and investment returns, and towards much more practical concerns around retirement planning. Some of the most common retirement planning questions expats ask us are:
- Do I actually have enough money to retire?
- Can I afford to retire in Switzerland?
- What do people like me actually spend in retirement?
- My situation is really complex: where do I even start?
- Where should I retire?
And they all have one thing in common:
They are planning questions, not investment questions.
The 3 Big Retirement Planning Money Questions
DO I HAVE ENOUGH MONEY TO RETIRE?
CAN I AFFORD TO RETIRE IN SWITZERLAND
WHAT DO OTHER EXPATS SPEND IN RETIREMENT
These three retirement planning questions are closely linked and usually require the same starting point: understanding your actual retirement expenses in Switzerland (or the country where you expect to retire).
Statistics and online articles often suggest that CHF 6,000 per month is ‘enough’ to retire in Switzerland. In reality, many of the expats I work with spend significantly more than that in retirement.
One of the biggest retirement expenses for expats is often travel. Regular flights to see friends and family abroad quickly add up.
Other clients prioritise their home life, spending tens of thousands on renovations because they value comfort and their living environment more than frequent holidays.
There is no ‘right‘ number.
What matters is being honest about:
- What you spend today
- What you will realistically spend in retirement
- What you want to spend in retirement
The clients who struggle most financially in retirement are often the ones who underestimated their lifestyle.
Financial planning is personal.
Your plan should reflect your priorities, not someone else’s averages.
My Situation Is Really Complex: Where Do I Even Start?
For many expats, retirement planning is more time-consuming than truly complex.
The first step is gathering data.
Start by listing:
- Every job you’ve had
- Every country you have worked in
- Every occupational and private pension
- Any government or state pensions
Many expats in Switzerland have multiple pensions across different countries. This makes understanding your full financial picture essential for effective cross-border retirement planning.
You also need clarity on:
- When each pension starts
- How each pension is taxed
- How double taxation agreements apply
Many people say: ‘I’ll deal with this at retirement.’
However, understanding your full retirement income earlier can materially affect decisions you make today, particularly around Swiss pension planning, including voluntary buybacks, annuity versus lump sum decisions, and long-term tax efficiency.
For example:
If you make voluntary buybacks into your Swiss pension without understanding future income from overseas pensions, you could end up paying more tax later than you initially expected.
Long-term cashflow planning for expats helps to:
- Visualise retirement income and expenses over decades
- See when pensions begin
- Identify short-term cashflow gaps
- Decide which investments to draw from first
- Anticipate changing tax rates
This turns complexity into clarity.
Where Should I Retire?
This is one of the most important retirement planning decisions for expats and it should never start with tax.
It should start with priorities.
What matters most to you?
- Lifestyle and climate
- Being close to friends
- Being close to children and grandchildren
If you are considering retiring abroad, visa rules are critical; especially for British passport holders and other third-country nationals.
Important factors include:
- How pension income is classified
- How investment income is treated
- Whether lump sums are considered pension income
- What retiree visa options are available
Some expats plan retirement in phases.
For example:
Spending the early, more active years of retirement in Switzerland, and later returning to their home country to be closer to family.
This requires planning for tiered retirement expenses.
What Are Tiered Retirement Expenses?
Tiered retirement expenses reflect the reality that spending often changes over time.
For example:
- CHF 10,000 per month from age 65 to 75
- CHF 7,000 per month from age 75 to 90
Very Important: All of this needs to be adjusted for inflation to protect your future purchasing power.
Early retirement years are often more active and more expensive. Later years may involve lower discretionary spending but potentially higher healthcare and support costs.
A good retirement cashflow plan reflects these different stages, rather than assuming flat spending forever.
The Bottom Line For Expat Retirement Planning In Switzerland
Successful retirement planning for expats in Switzerland is rarely about beating the market.
It is about:
- Understanding your lifestyle and retirement spending
- Coordinating multiple international pensions
- Managing cross-border tax issues
- Planning for changing expenses over time
- Making sure your plan reflects your real priorities
If there is a retirement question you keep circling but have not asked yet, it is usually the right one to start with.
And it is almost always a retirement planning question, not an investment one.
If any of these questions sound familiar, it’s usually a good time to have a proper planning conversation.
Getting clarity early can make a significant difference to the decisions you make today. Find out more about our cashflow planing process.
