Can I transfer money from my Swiss pension fund to a pillar 3a account or life insurance?

I will be leaving my employer shortly and because 3a savings accounts have much better interest rates than vested benefits accounts, I would rather park my money in one of those. Is it possible to transfer my money from my pension fund to a 3a account?

Hi there,

It is not possible to transfer money directly from the second pillar of retirement savings (2a occupational pension funds, 2a vested benefits accounts) to the third pillar (3a savings accounts, 3a life insurance policies, 3a investment funds).

On the other hand, transferring money from the third pillar to the second pillar is possible if there are gaps in your pension fund. These occur when your current salary - and thus your pension fund contributions - is higher than it was in the past. Transfers from a 3a retirement savings account or other 3a solution to your 2a pension fund can be made on a tax-neutral basis because while money withdrawn from the third pillar early is taxed, contributions to the second pillar are tax deductible. You can contribute as much as the gap in your pension fund allows for.

If you become self-employed after leaving your employer, you can withdraw your second pillar assets (pension fund) upon becoming self-employed. You can then place the money in a third pillar solution (a 3a account or life insurance policy, for example). Here too, taxes may apply when you withdraw pension savings early and the amount of money you can contribute to a 3a solution and deduct from your taxable income in 1 year is limited (CHF 33,840 in 2017).

If you will be unemployed after leaving your employer, you will have to transfer your pension savings from your pension fund to a vested benefits account.

Best regards from Moneyguru

More on this topic:
Swiss 3a retirement savings account comparison
Swiss vested benefits account comparison