AHV 21 Reform

AHV 21 Reform (also called OASI 21 or AVS 21) is a major national pension reform that entered into force on January 1, 2024, fundamentally changing Switzerland's state pension system (Pillar 1). The reform standardizes the retirement age for women and men, introduces flexible pension withdrawal options, and increases VAT to stabilize AHV/AVS financing through 2030.

The core changes: Women's retirement age (now called "reference age") is gradually increasing from 64 to 65, reaching full equality by 2028 (phased in: born 1961-1964 transition, born 1965+ retire at 65). Flexible retirement is now possible on a monthly basis (not just full years): early withdrawal from age 63 (2 years early) with reductions, or deferral up to age 70 (5 years late) with increases. Partial retirement is possible—draw 20-80% of your pension while continuing to work. VAT increased by 0.4 percentage points to fund AHV. Transitional generation of women (born 1961-1969) receive compensatory measures including lower pension reductions for early withdrawal. The term "retirement age" is replaced by "reference age" (Referenzalter) to reflect flexibility.

Real-World Example If Maria was born in 1963, her reference age is 64 years and 9 months (transition cohort). She can retire early at 62y9m with a 10.8% permanent pension reduction, at her reference age with no reduction, or defer until 69y9m with a 31.5% permanent increase. She can also draw 60% of her pension at 64 and continue working part-time, delaying the remaining 40% for higher benefits.