A 3.5% safe withdrawal rate is often recommended in Switzerland to account for local wealth tax and healthcare costs.
How to interpret your results?
Swiss FIRE Goal
For 72,000 CHF/year living expenses at 3.5% withdrawal rate, your target portfolio is ~2,057,000 CHF.
Frequently asked questions
What is the FIRE movement in Switzerland?
FIRE (Financial Independence, Retire Early) focuses on achieving early financial freedom through aggressive saving and index investing.
Why use a conservative 3.5% safe withdrawal rate in Switzerland?
Cantonal wealth tax (Vermögenssteuer) drag lowers net portfolio yields. A 3.5% withdrawal rate protects capital against inflation and taxes indefinitely.
Do early retirees still have to pay AVS social security contributions?
Yes. Non-active residents in Switzerland must continue paying mandatory non-active AVS contributions until official retirement age (65) to avoid pension gaps.
How much capital is required to achieve FIRE status in Switzerland?
To cover 72,000 CHF in annual living expenses at a 3.5% SWR, a target FIRE portfolio of roughly 2.05 million CHF is required.
How does cantonal wealth tax (Vermögenssteuer) impact FIRE retirement capital?
Swiss wealth tax levies between 0.2% and 0.8% annually on total net assets, lowering portfolio compound returns and underscoring the need for a prudent withdrawal rate.
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