Withdrawing Pension Savings When Leaving Switzerland

I heard that when I leave Switzerland I can withdraw the money which my employer and I have paid to my pension fund. Is that correct?

Hi there,

You can withdraw your pillar 2 occupational pension fund savings when you relocate from Switzerland to a country which is not a member of EFTA (Switzerland, Liechtenstein, Norway, Iceland) or the European Union. You will have to officially deregister and provide some proof of residence in your new country in order to withdraw pillar 2 assets.

A tax will be levied directly from assets before they are paid out, but a special, low rate is used. Transferring your pension savings to a vested benefits foundation in a municipality with low tax rates can help you save money because the location of the vested benefits foundation decides the tax you pay when you are no longer resident in Switzerland.

If you move to an EFTA or EU member country, your pension savings must remain in Switzerland, and you will have to open vested benefits accounts to hold them in. Opening two accounts (the maximum possible) is recommended because accounts must be cashed out in full and staggering withdrawals helps you avoid being bumped into high tax brackets.

Best regards from Moneyguru

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