Partial Retirement – What Couples Should Definitely Consider
Published on 2026-03-03
Partial Retirement – What Couples Should Pay Attention To
Fewer and fewer people want to switch from a full-time job to full retirement overnight. The trend is clearly towards flexible, staggered retirement: working hours are gradually reduced, income and pension payments are "smoothed" over several years.
Current Trend (2024/2025):
Many reduce their workload in 2–3 stages instead of one big step.
Typical: reductions of 20 percentage points per step (e.g., 100% → 80% → 60% or 50%).
The transition to partial retirement often begins between the ages of 60 and 64, sometimes earlier for stressful professions.
Models with 1–2 additional days off per week or block pensions/sabbaticals are popular.
Why Partial Retirement is Often Healthier than Early or Late Retirement:
It reduces stress and exhaustion gradually, while maintaining structure, purpose, and social contacts.
The transition for identity and psyche is gentler, as new roles and activities can be developed before the profession is completely eliminated.
Pure late retirement with full throttle until the end increases the risk of overload, sleep, and cardiovascular problems.
Early retirement provides time but often creates financial pressure and pension losses. Partial retirement is the middle ground: more time for health, sports, and family while continuing income and pension accumulation.
Why the Topic is Particularly Sensitive for Cohabiting Couples
For cohabiting couples, partial retirement carries specific risks. Unlike married couples, they are legally much less protected – especially if income and pension planning are not integrated.
On the surface, many things appear to be organized (two incomes, shared apartment/house, children, possibly a business). However, in practice, coordinated solutions are often lacking: pension, taxes, assets, real estate, and law are considered separately – and this becomes a problem during partial retirement.
Critical Points for Cohabiting Couples:
No entitlement to widow/widower pensions from AHV and UVG
Often no or only limited entitlement to benefits from the pension fund
No legal inheritance entitlement.
Those who reduce their workload earn less, contribute less – and often realize too late that gaps in pension provision are emerging and protections are falling away.
Partial Retirement and AHV: What Really Changes?
Partial retirement with partial pension is now also possible with AHV. The old-age pension can be drawn gradually, parallel to the reduction of working hours.
Important Points for Cohabiting Couples:
With a lower workload, AHV contributions decrease, which can affect the later pension – especially with interruptions or part-time work over a longer period.
A withdrawal (full or partial) permanently reduces the corresponding pension component permanently – critical if the other partner relies on this income.
A (partial) deferral can increase the pension but must fit into the overall planning and health situation.
Cohabiting partners have no legal entitlement to AHV survivor pensions – regardless of whether a partial or full pension is drawn.
Practical Example:
Anna (58) and Markus (60) have been living together for 20 years. Markus reduces to 60% and draws his AHV two years earlier. This seems more relaxed, but Markus's AHV pension remains permanently lower – and Anna would have no entitlement to an AHV widow's pension in the event of his death. This decision thus burdens their joint financial planning without providing security.
Partial Retirement and Pension Fund (BVG): Possible – But Complex
Many pension funds today offer models for partial retirement or staggered retirement:
A part of the retirement capital is converted into a pension or drawn as capital.
The remainder stays in the pension fund as long as (partial) work continues.
For cohabiting couples, three issues are particularly crucial: pension vs. capital, purchases, and partner protection.
Pension or Capital – Or a Combination?
Pension: lifelong security, good planning.
Capital: flexibility, potential for returns – but also investment risk and tax issues.
Often, a combination is sensible if liquidity, taxes, and partner protection are planned properly.
Capital Withdrawals in Partial Retirement – Basic Rules
In partial retirement, you can withdraw part of your pension fund balance as capital while simultaneously reducing your workload.
The first partial withdrawal must often be at least 20% of the retirement benefit; in total, usually a maximum of three capital withdrawals are possible (regulations).
Each capital withdrawal reduces the later pension because capital is withdrawn.
Many funds allow a combination of partial pension and partial capital – always within the framework of the regulations and with tax consequences.
Pension Fund Purchases During (Partial) Retirement
Pension fund purchases increase retirement benefits and reduce taxable income. In the context of partial retirement, the following applies:
After a voluntary purchase, the resulting benefits may not be withdrawn in capital form for 3 years (Art. 79b BVG).
If a (partial) capital withdrawal occurs within this period, the tax deduction is usually recalculated retroactively.
Many funds further restrict purchases during or after partial retirements.
Meaningful Configurations:
Ø Option A – Purchase first, then withdraw capital: Purchase today, wait at least 3 years, then partial retirement with (partial) capital withdrawal.
Ø Option B – Partial retirement only with pension, continue to purchase: Reduce workload, initially only draw benefits as a pension, while making purchases to close gaps, without capital withdrawal in the next 3 years.
Note:
Capital withdrawals and purchases can be combined – but only if there are at least 3 years between the purchase and (partial) capital withdrawal and the regulations allow it.
What Benefits Does the Cohabiting Partner Receive?
Particularly important for cohabiting couples:
Many pension funds only pay a partner pension if clear conditions are met (minimum duration of the relationship, shared household, financial support, notification to the pension fund, etc.).
Without timely registration and evidence, the partner may end up with nothing despite a long relationship.
A high capital withdrawal instead of a pension can significantly weaken partner protection if no supplementary solutions exist (e.g., life insurance, will, beneficiary arrangements).
Taxes and Staggered Withdrawals
Capital withdrawals from the 2nd pillar are taxed separately but progressively.
Those who withdraw everything in one year often pay significantly more taxes.
With a staggered withdrawal strategy (over several years, coordinated with 3a withdrawals and other assets), the tax burden can be significantly reduced.
Practical Example:
Thomas (63) and Sabine (55) live together. Thomas first reduces to 50%, later fully at 66.
First, he withdraws part as capital to reduce the mortgage.
Afterwards, he receives a lifelong pension.
With integrated financial planning, taxes are optimized, financing in retirement is secured, and Sabine is protected through partner pension and additional safeguards.
Pillar 3a – Flexibility Despite Partial Retirement
Contributions to pillar 3a are possible as long as there is an AHV-obligated income – even with reduced workload.
Several 3a accounts usually allow staggered withdrawals over several years.
The combination of staggered 3a withdrawals and pension fund capital withdrawals is a central lever for tax optimization.
Home Ownership (WEF) – Never Considered in Isolation
A WEF withdrawal is also possible around retirement but is highly dependent on the pension fund regulations.
Impacts on:
Pension fund benefits (lower pension with withdrawal)
Affordability and mortgage strategy
Taxes and liquidity in retirement
Especially with a shared home in cohabitation, ownership structures, mortgage, repayment, and partner protection are crucial.
Taxes and Financing in Retirement: Not Just a "Side Issue"
Partial work means:
less income,
different tax burden,
changed affordability of a mortgage.
In cohabitation, it can become critical if:
one partner earns significantly more and their reduction upsets the household budget,
banks reassess the mortgage due to lower income,
Capital withdrawals from the 2nd and 3rd pillars lead to high tax bills without planning.
Practical Example:
A cohabiting couple gradually reduces their workload and wants to renovate the house while withdrawing pension fund capital.
Without planning, higher taxes in the withdrawal year, strained liquidity, and in extreme cases, discussions with the bank about affordability may arise. With integrated planning, withdrawal timings, renovation, mortgage, and pension can be sensibly coordinated.
Lack of Legal Protection: Without Own Regulations, It Won't Work
In cohabitation, the following applies:
No automatic inheritance entitlement,
No legal AHV survivor pension,
Pension fund benefits only if the regulations provide for it.
Therefore, the following are essential:
A cohabitation agreement (costs, assets, ownership),
Clear beneficiary arrangements in the pension fund,
A proper will or inheritance regulations,
An integrated financial and pension planning that brings together pension fund, 3a, securities, real estate, taxes, and partner protection.
Architecture of Partial Retirement: Where the Lever Really Lies
The building blocks (AHV, pension fund, 3a, WEF, taxes) are usually not the problem in themselves – the critical factors are sequence and timing:
When to make purchases?
When to withdraw (partial) capital from the pension fund?
When to stagger 3a withdrawals?
When to use WEF – and when better not to?
Professional planning always considers:
A timeline of at least 3–5 years,
Taxes today and at withdrawal,
Liquidity and reserves,
Your personal profile "pension vs. capital",
The specific situation as a cohabiting couple (partner protection, inheritance law, pension fund regulations).
Conclusion & Invitation
Partial retirement in cohabitation sounds like "just working less." In reality, it deeply impacts pension provision, taxes, financing, and legal protection. Those who only adjust individual levers ("I work less and withdraw some capital") risk:
Provision gaps,
Missed tax opportunities,
Uncertainty for the partner – especially in serious cases.
My Approach:
I support entrepreneurs and cohabiting couples with integrated financial and pension planning, ensuring that pension provision, taxes, assets, real estate, and succession work together smoothly and decisions like "partial retirement," "pension or capital," and "mortgage in retirement" are made based on solid foundations.
👉 If you are planning a partial retirement in cohabitation – or want to know where risks, tax traps, and opportunities lie in your situation – let's talk about it.
👉 In a non-binding initial conversation (30–45 minutes), we will clarify which questions you have on the table and what the next steps should be.