18 to 29 years old

Frequently asked questions about retirement

There’s a lot to know and watch out for when thinking about retirement – get answers and advice from our experts

How can pillar 3a save me taxes?

Private retirement provision is important. That’s why payments into your pillar 3a up to a certain amount can be deducted from your taxable income. Find out how you can save on taxes and calculate your annual tax savings in a few clicks.

Your tax advantages

  • In your tax declaration, you can deduct the paid-in amount from your taxable income.
  • The capital saved is exempt from income tax during the term.
  • Interest earnings and capital gains from pillar 3a are tax-exempt.
  • When your retirement savings are disbursed, they are taxed at a reduced rate, separately from income.

How much you save in taxes depends on your taxable income.

Our tip

As soon as you've saved up about 50,000 francs in your retirement account, open a second account. You can later withdraw your money in staggered amounts and keep the tax burden to a minimum.

Pillar 3a tax calculator

Find out how much you can save annually on taxes.

How can I finance my own home with retirement funds?

Home ownership and pension provision go hand-in-hand. When it comes to financing your own four walls, you can also use money from your pension fund and restricted pension provision. However, there are a few things for you to consider.

Money from pillar 3a and the retirement fund, however, may only be used for financing if you'll be the one living in the property. If financing a vacation property or a second home, you'll not be allowed to withdraw savings from the retirement fund.

If you would like to use the retirement funds as equity, both pillars offer two possibilities:

  • When making an advance withdrawal, the money is taken out of your retirement assets.
  • When pledging, your retirement assets only act as security and do not reduce your pension payments.  

Advance withdrawal and pledging are possible with money from the occupational pension (second pillar) and the private retirement provision (third pillar).

Our tip

If you're also using pension fund money for the financing, be sure to maintain your pension and death and disability coverage. 

When you save for your home with pillar 3a, you can fulfill your dream of living under your own roof, benefit from tax deductions based on your payments into pillar 3a and get tax-exempt preferential interest rates on your retirement assets.

Get expert advice

There's a lot to consider when financing your home with retirement funds because you don't want to have to make compromises later. Our retirement experts will gladly walk you through the different possibilities in detail and propose financing solutions that will work for you now and when you retire. 

How do I start systematically building up retirement assets?

Ideally, you build up your assets in pillar 3a over a long period of time. In addition, there’ll be opportunities to withdraw yet more money from your retirement savings. Find out how you can build up your assets.

If you're already a UBS client and using e-banking, you can open a retirement account directly in E-Banking, where you can also set up a standing order.

Returns instead of interest

In addition to your retirement account, it pays to open a custody account. This way, you combine tax-deductible retirement savings with investment funds, giving you the chance of higher earnings.

If you have both a retirement and a custody account at UBS, we offer Vitainvest funds – eight customized investment solutions that offer a different mix of bonds, shares and real estate.

Which fund you choose depends on your investment horizon, i.e. your age, personal investment strategy and risk tolerance. You could also invest your money in several funds.

Good advice pays off

We'll gladly show you the investment funds in detail and propose a tailored solution to help you optimally invest your retirement assets to earn the best returns.

I want to move abroad. What happens to my retirement savings?

If you keep your residence in Switzerland and continue to draw a salary from a Swiss employer, you do not need to make any arrangements in terms of retirement provision. If you give up your residence and/or job in Switzerland, the following applies:

Pillar 1

If you're no longer employed in Switzerland, you will no longer be covered by mandatory insurance and, in turn, make contributions. You will still, however, receive benefits based on the contributions already made and number of years you contributed. You'll receive a reduced pension from AHV/IV when you retire, or in the case of invalidity or death.

Pillar 2

If you interrupt your employment in Switzerland for a stay abroad, you lose access to the occupational pension fund and can no longer keep your money there. Instead, you may transfer the money to a vested benefits account until you again take up a job in Switzerland – at which time you could transfer it to a new occupational pension fund.

If you leave Switzerland permanently and move to a country outside the EU/EFTA, you may withdraw the pension fund capital entirely – though you do not have to. Instead, you could deposit your money in a vested benefits account.

Pillar 3

If you leave Switzerland permanently, you can withdraw your savings from the restricted third-pillar pension provision without limitations.

Our tip

Instead of a vested benefits account, you can deposit your retirement money in a vested benefits custody account. Your money will then be invested in a Vitainvest investment fund, giving you the chance of higher earnings. 

Marriage or common-law partnership: what does it mean for my retirement?

Living together without a marriage certificate seems uncomplicated. But if you want financial security, you do need to think about it. While not the case for married couples and registered partnerships, common-law partnerships in Switzerland are subject to almost no legal regulation.

Our tips

As a cohabiting partner, take the opportunity to draw up a cohabitation agreement. It should specify rules around ownership rights, the split of living expenses and the eventual dissolution of the partnership.

As a cohabiting partner, you have no legal claim to inheritance. This is why it makes sense to supplement the cohabitation agreement with a testament (will) or inheritance contract to ensure partner benefits.

Pillar 1: Give some thought to financial security. The AHV does not pay out a widow's or widower’s pension to cohabiting partners.

Pillar 2: Pension funds are not required to pay out pensions to cohabiting partners. Many funds provide benefits if the partnership has existed for more than five years and written notification was submitted to the pension fund.

Pillar 3: Payment of the restricted 3a pension provision is regulated by law. In pillar 3a, you could potentially designate – in writing – the cohabiting partner as your beneficiary. The unrestricted pillar 3b can be administered flexibly.

Factsheet financial security

Find more tips and useful information about retirement provision for couples with or without a marriage certificate in our "Common-law partnerships" factsheet.

What's the right way to read my pension fund statement?

Your pension fund statement can tell you a lot about your personal retirement situation. For example, you can view the status of your pension fund capital and the benefits you can claim.

In every pension fund statement, you'll find the following details:

  1. Declared wages (corresponds to AHV annual salary)
  2. Insured wages (the part of your salary insured in your pension fund)
  3. Retirement assets (total amount that has been paid in by you and your employer, including interest)
  4. Old-age benefits
  5. Early retirement benefits
  6. Survivors' benefits
  7. Invalidity benefits
  8. Financing and relative benefit contributions
  9. Advance withdrawal for residential property (the maximum possible amount you can withdraw to finance a property for your own use)
  10. Purchasing potential (information about maximum possible voluntary payments)

Our tips

Check that the information in the pension fund statement is correct. For example, does the declared AHV annual salary reflect the actual gross salary in your wage statement? Also be sure to examine other points, e.g. what happens to the pension fund benefits in the event of invalidity or death.

If you move to a new job, it pays to look closely at the pension fund. A higher salary does not always mean better retirement provision.

Familiarize yourself with the rules and regulations of your pension fund. You should pay special attention to the terms for survivors' benefits, particularly in the case of cohabiting partners since pension funds often require written notification from the beneficiaries.

Factsheet pension fund statement

In our "Understanding your pension fund statement" factsheet, you’ll find more information and tips.

I’m a young professional. Should I already start planning for my retirement?

When planning for retirement, this much is certain: the sooner, the better. For one, payments into pillar 3a save you taxes and you also have more time to accumulate wealth. Saving even small amounts pays off.

Sample calculation

If you put 100 Swiss francs into a retirement account every month, you’ll save up roughly 50,000 francs over 40 years, including interest.

Our tip

Combine your pillar 3a pension account with a custody account. Your money will be invested in a Vitainvest investment fund, giving you the chance of higher earnings.

With the UBS Vitainvest investment fund, you can choose from eight investment funds, each offering a different mix of bonds, shares and real estate. As a young professional, you have a long investment horizon – which is why funds with a high equity component are attractive. They let you make the most of the growth potential in the stock markets.

1 hour well spent

With the UBS Retirement Plan, our specialists work with you to draw up a concrete plan of action and answer your questions about retirement. For example:

  • Will I have enough money when I retire?
  • How can I invest my money to get higher returns?
  • How can I finance my own home using my retirement savings?
  • How can I best plan my retirement to save on taxes?

First job? Saving for retirement is worthwhile – for you too!

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