- In Switzerland, the realistic multiple is 30 to 35 times your spending, against 25 in the United States.
- Your pension fund is locked until 60: you need a free portfolio to get there.
- The canton matters a lot: wealth tax varies up to fourfold.
The real FIRE number, canton by canton
In Switzerland, someone living off their capital pays costs an employee never sees: wealth tax, AHV without an employer, full health insurance. Example: with 6'000 francs of spending a month, you need between 2.1 and 2.4 million depending on the canton, instead of 1.8 million under the American rule.
| Annual item | Geneva | Lausanne | Zurich | Zug |
|---|---|---|---|---|
| Basic spending | CHF 72'000 | CHF 72'000 | CHF 72'000 | CHF 72'000 |
| Wealth tax | ~CHF 12'700 | ~CHF 14'300 | ~CHF 5'900 | ~CHF 3'600 |
| AHV without a job | ~CHF 5'000 | ~CHF 5'000 | ~CHF 5'000 | ~CHF 5'000 |
| Health insurance without an employer | ~CHF 6'000 | ~CHF 6'000 | ~CHF 6'000 | ~CHF 4'000 |
| Portfolio needed (×25) | ~CHF 2'390'000 | ~CHF 2'430'000 | ~CHF 2'220'000 | ~CHF 2'110'000 |
Single person, about CHF 2 million of wealth. 2026 wealth tax, canton and municipality, in the cantonal capital: FTA calculator. AHV and health insurance: orders of magnitude.
1. The pension fund locked until 60
You cannot touch your pension fund before 60, except to buy a home, leave Switzerland for good or become self-employed. After 20 years of a professional career, it often holds several hundred thousand francs. A Swiss FIRE is therefore built in two pots: a free portfolio that alone finances your spending until 60, then the pension fund and 3a, which take over.
Example: to stop at 45 with 6'000 francs of spending a month, the free portfolio must cover 15 years, about one million francs with a safety margin.
The free portfolio needed by FIRE age
| FIRE age | Years until 60 | Free portfolio needed |
|---|---|---|
| 40 | 20 | CHF 1'200'000 to 1'500'000 |
| 45 | 15 | CHF 900'000 to 1'200'000 |
| 50 | 10 | CHF 700'000 to 900'000 |
CHF 6'000 of spending a month, with a 20% safety margin, wealth tax not included.
2. AHV keeps billing you
Stopping work does not free you from AHV: until 65, you contribute as a non-employed person. The contribution depends on your wealth and pensions: a few hundred francs a year at minimum, several thousand with wealth of a few million. These contributions are not lost: they avoid missing years, which would reduce your pension for life. See the AHV pension.
3. Wealth tax
Switzerland taxes your net wealth every year: on a large portfolio, it is a permanent drain on your return. On 2 million, it costs about 3'500 francs a year in Zug or Schwyz, and more than 12'000 in Geneva or Lausanne. In Geneva, that is already a sixth of a 4% annual withdrawal.
4. The 4% rule is too optimistic here
The rule comes from a 1994 American study, calculated on 30-year retirements. A FIRE at 40 lasts 50 years, and wealth tax takes part of the return every year. Many aim for a withdrawal of 3 to 3.5% a year instead, or 29 to 33 times spending.
When your gains become your only income, the tax office may examine whether you have become a professional securities dealer. With a long-term portfolio and few transactions, the risk is low. See the reclassification risk.
Pillar 3a in a FIRE plan
As long as you have an income, pay in the maximum: it is deductible, and it prepares the phase after 60. At the maximum for 30 years, with a prudent 3% return, it reaches about 345'000 francs. Spread it over several accounts, withdrawn in different years from 60: each withdrawal is taxed lower. See the 3a limit.
Going further
Choose your canton when you stop. On 2 million, moving from Lausanne to Schwyz saves more than 10'000 francs of wealth tax every year, before income tax. The day your salary no longer ties you to a place, it is a major lever.
Or choose your country. Leaving Switzerland ends Swiss wealth tax and AHV contributions, and unlocks your pension fund under the destination rules. Health insurance, tax and currency then follow the new country: see leaving Switzerland.
Couples: AHV can be covered by the spouse. If your spouse still works and pays at least twice the minimum contribution, you are exempt from contributing as a non-employed person.
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Frequently asked questions
What FIRE number should I aim for in Switzerland?
Rather 30 to 35 times your annual spending than 25 times. For CHF 72'000 of spending a year, count on about CHF 2.1 to 2.4 million depending on the canton, excluding pension fund capital.
Can I access my pension fund before 60 to live on?
As a rule, no. The only exceptions: buying a main residence, leaving Switzerland for good, becoming self-employed. They do not finance an ordinary early retirement.
Do I have to pay AHV if I live on my investments?
Yes. Every resident contributes until the reference age. Without employment, the contribution depends on your wealth and pensions: about CHF 530 a year at minimum (CHF 541 in 2027), several thousand francs with wealth of a few million.
Does the 4% rule work in Switzerland?
It was calculated on US data and 30-year retirements. In Switzerland, the wealth tax takes part of the return every year, and a FIRE at 40 lasts 50 years. Many aim for 3 to 3.5% instead.
Should I FIRE in Switzerland or move abroad?
Switzerland is expensive to live in without a salary: wealth tax, AHV contributions and health insurance with no employer. Moving abroad changes everything (tax, health insurance, currency), and leaving Switzerland also unlocks your pension fund, under the destination rules.
Which canton is most favourable?
For a large portfolio, the wealth tax decides. On CHF 2 million, the FTA calculator gives about CHF 3'400 in Schwyz and 3'600 in Zug, against 12'700 in Geneva and 14'300 in Lausanne (2026, single person): more than CHF 10'000 of difference a year.
Sources: Bengen, W.P. (1994), Journal of Financial Planning ; FSIO, AHV contributions of non-employed persons ; BVG / LPP art. 13 and 30c ; FZG / LFLP art. 5 ; BVV 3 / OPP 3 art. 7 ; FTA tax calculator (2026 wealth tax) ; KVG / LAMal, 2026 premiums. ViaVest estimates.