This decision depends to a large extent on your life situation, income and assets. You should also take your personal wishes and goals into account.
As a rule of thumb: Cost of living and basic needs (i.e. accommodation and utility costs as well as insurance and everything you need on a day-to-day basis) should be covered by the benefits from AHV and the pension fund. Whatever you have beyond that can be withdrawn as capital. When deciding whether that makes sense, you should take the following into account:
A pension provides you with a secure, monthly income – for the rest of your life. And in the event of death, your spouse gets a guaranteed survivor's pension. In general, this amounts to 60 percent of the original pension.
Good to know: There is no protection against inflation, however, which means the pension fund is not required to adjust the benefits to higher costs. And the pension fund benefits must be taxed as income.
If you decide on a lump-sum payment, you have more scope for action in your personal financial planning. You're free to invest your money as you please, but also bear some risk of variability in return. And in the event of death, the unused retirement savings pass on fully to your heirs – which is not the case for a pension.
Further information is available under Pension or lump-sum payments and in our free information sheet.