Annuity or lump sum? A guide to your decision.
Do you want to draw your retirement assets as an annuity, a lump sum or a combination of the two? We have put together some information to help you make that important decision.
You can opt for an annuity, a lump sum or a combination of the two at every stage of your retirement. You do not have to choose the same option each time, but once your choice has been made, you cannot reverse it.
Providing security for your family, taxes, life expectancy, financial market and other risks all play a role in your decision.
Life expectancy
Men 88.4 years, women 90.1 years
At PUBLICA, the average life expectancy at age 65 is 88.4 years for men and 90.1 years for women (as of 2025). This is three years longer than the Swiss average for men, and two years longer for women. However, the differences at individual level can be substantial.
The following table shows the factors PUBLICA considers when calculating for its pension recipients:
Men
Average
life expectancy: 88.4 years
One in three dies before reaching 83
One in three lives to be older than 90
One in ten dies before reaching 74
One in ten lives to be older than 95
Women
Average
life expectancy: 90.1 years
One in three dies before reaching 85
One in three lives to be older than 92
One in ten dies before reaching 76
One in ten lives to be older than 97
To be on the safe side, men should assume a life expectancy of 95 years and women 97 when considering a lump-sum withdrawal. Even then, however, you could still live longer than this.
The pros and cons in detail
This document explains in detail the advantages and disadvantages of an annuity or a lump sum.
An individual decision
What does this mean for you? There is no single, universally valid answer to that question.
We recommend asking yourself the following to help you decide:
- How much risk am I willing and able to take on, and how much security do I want?
- Do I live alone? If not, how financially independent is my partner? Do I want to provide security for him/her?
- How do I balance taxes, returns and risks individually?
- Do I have substantial financial commitments that affect my freedom to choose? For example, do I have a mortgage to repay?
- How experienced am I in investing money?
- Does my partner agree to me withdrawing a lump sum?
Should I retire earlier or later? Run a simulation in myPublica
You can simulate a range of scenarios in the myPublica active member portal, including your pension at various times. If you don’t yet have your access data, your contact will be happy to provide them.
How and why do others decide? PUBLICA investigated
PUBLICA has noted that more and more active members are drawing their retirement assets as a lump sum rather than an annuity. Why? A study we carried out in 2024 set out to answer that question.
