Withdraw your retirement savings – but not all at once
Depending on the canton, you can save a lot of money by withdrawing money from your pension in stages, for example to pay off a mortgage or when you stop working. This allows you to reduce progressive taxation. Therefore, try to stagger withdrawals of your capital from pillar 3a, from your pension fund or, if applicable, from the vested benefits foundation. To do so, you will need several pillar 3a accounts, which can all be opened with the same bank. Open an additional pillar 3a account as soon as your existing one reaches around 50,000 francs.
Tax relief for empty rooms
If you have a room in your home that is no longer used, for example because your kids have flown the nest, your canton could allow you to claim tax relief for underuse. The imputed rental value is reduced proportionately by the unused room(s). You could then pay the resultant tax savings directly into your pillar 3a account.
Good timing pays off
The timing of a wedding, the renovation of your home, a career break or a move to a municipality with lower tax rates can help you save on taxes. If you are absent from your job between September and April, your break covers two tax years. It is also better to split major renovation work across two or more tax periods. If you move or marry, the relevant tax year may be important. If possible, choose the most opportune time.