Leaving Switzerland? Explore Our Vested Benefit Solutions
If you’re planning to leave Switzerland due to unemployment, a career break, further training, or maternity leave, it’s crucial to manage your pension fund correctly. One important step is to transfer your pension assets to a vested benefits account. This account safeguards your occupational pension savings until you resume employment in Switzerland or reach the eligibility to access your pension.
When Do You Need Vested Benefit Solutions?
You need to consider vested benefits solutions when your annual income drops below CHF 22,010, as you are no longer required to contribute to pillar 2. However, this does not mean you have free access to your accumulated capital. Instead, you must transfer your savings to a vested benefits account with a financial institution of your choice. This ensures that your pension savings are securely managed until you can access them.
If you start working in Switzerland again, you will need to transfer the funds from your vested benefits account to your new pillar 2 account under your new employer’s pension plan. Failing to open a vested benefits account will result in your pillar 2 capital being automatically moved to the Substitute Occupational Benefit Institution. This is less advantageous if you’re looking to optimize returns, so proactive management is key.
Situations That Call for a Vested Benefit Solution
- Early retirement planning: Ensure your savings are managed until you can legally access them.
- Self-employment: Protect your savings while you’re not contributing to a company pension fund.
- Permanent relocation: Keep your pension assets safe when leaving Switzerland permanently.
- Temporary leave: Maintain your pension fund during parental leave, further training, or unexpected unemployment.
How Swiss Prime International Can Help
At Swiss Prime International, we specialize in helping clients manage their pillar 2 funds during these life changes. We offer tailored solutions that help you:
- Maximize your savings: Keep as much of your pillar 2 funds as possible by optimizing the withdrawal location and minimizing taxes.
- Simplify the process: Work with a single point of contact to reduce paperwork and streamline your pension management.
- Invest wisely: Choose the best financial institutions like Swiss Life, Liberty Pension Foundation, and Credit Suisse to handle your funds.
- Receive expert guidance: Our advisers provide comprehensive support, ensuring your pension savings are managed according to your unique needs.
Capital Tax Savings Example: Canton Schwyz
For example, Mark, who worked in Zurich for 10 years, had CHF 500,000 in his pillar 2 pension. By choosing to withdraw his funds in Canton Schwyz instead of Zurich, he saved CHF 17,500 in taxes. This illustrates the significant tax savings that can be achieved through strategic planning.
