Pensions in Switzerland
The Swiss pension system is fairly unique in its design and structure. It consists of 3 pillars:
The 1st pillar: This is the government/state part. Contributions here go towards your old age pension, as well as unemployment benefits. This is mandatory.
The 2nd pillar: This refers to occupational pensions. This is mandatory up to a certain income level. Contributions are tax efficient.
The 3rd pillar: This refers to voluntary additional pension contributions, that can help avoid financial shortfalls in retirement. It also has attractive tax benefits.
Vested Benefits Accounts
A Swiss vested benefits account is an important part of managing your pension when you leave an employer or move between jobs. It allows your occupational pension benefits to remain invested and protected while giving you greater control over how your retirement savings are managed. The right solution can help you make the most of your pension, whether you are changing jobs, leaving Switzerland or planning for retirement. We can advise you on the options available and help you find the solution that best suits your circumstances.
Third Pillar
The Swiss 3rd pillar is a fantastic way to reduce your taxable income while also generating a minimum guaranteed return and security. You can build life cover for you and your family into a policy and even leverage your 3rd pillar against a mortgage. The only question is, should you have your 3rd pillar with a bank or an insurance company? We can advise you on the various options available and which one suits your requirements best.