Planning Swiss retirement savings and pension fund withdrawals to save on taxes

I am getting older and want to know how I should go about getting my Swiss 3a and 2a retirement savings paid out in order to pay the least taxes possible. What should I consider from a tax perspective? Thanks.

Hi there,

Planning the withdrawal of your retirement asset in advance can help you avoid spending a lot of money on unnecessary taxes.

For one thing, placing your third pillar retirement savings in several 3a bank accounts and insurance policies can help you save. This is because after you reach the age at which you can withdraw your 3a assets, closing your different accounts over several years prevents you from receiving a single, large payment which would bump you up into higher income tax and wealth tax brackets.

The rate at which your retirement savings are taxed varies between cantons. If you retire in Switzerland, the taxes you pay are determined by your place of residence.

If you retire outside of Switzerland, a source tax will be levied on withrawals of both private retirement assets (3a) and occupational pension fund assets (2a). This tax varies between cantons, so moving your 2a pension fund assets to a pension scheme in a canton with a low source tax can help you save a lot of money.

The same holds true for 3a assets: transferring your 3a assets to banks in a low-tax canton can save you money when you withdraw your assets before leaving Switzerland.

Best regards from Moneyguru

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