Whether you're changing jobs or staying abroad – a vested benefits account lets you hold on to your retirement savings when you take a break from or give up your job in Switzerland.
Assets, interest and capital earnings are tax-exempt before withdrawal
Full preservation of your vested pension capital if you take a break from employment
Possible, e.g. when you become self-employed or to finance your own home.
Vested benefits account at a glance
- Account maintenance fee of three francs per month
- No notice period
- Free annual account statement
Good advice pays off
We’re glad to answer any questions you may have about pensions and will give you comprehensive advice – for example, on the following topics:
- 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 with pension funds?
- How can I best plan my retirement to save on taxes?
Our tip: Your money only lies dormant in your savings account. With a vested benefits account, your money is invested in Vitainvest investment funds – this gives you the opportunity to earn higher returns.
When you take a break from employment or become self-employed, you will no longer be a member of a pension fund. To keep your retirement savings, the pension fund of your last employer will transfer the money to an account in a vested benefits foundation. And so your pillar 2 assets are deposited – for example
- during parental leave;
- during vocational training;
- when you switch to a job abroad;
- during a sabbatical;
- for a longer trip;
- during unemployment.
Once you return to employment, have the savings from your vested benefits account transferred to your new pension fund.
Good to know: You can freely choose which foundation should hold your vested benefits account – that means that you can also switch from another vested benefits foundation to UBS.
If you move into the house or apartment yourself, you can use the savings in your vested benefits account for the financing. Early withdrawal is possible every five years and without a minimum requirement. The withdrawn amount can be paid back into pillar 2 at any time. Alternatively, it is also possible to pledge the funds.
The savings can then be used for building, buying or renovating real estate as well as for some forms of participation (e.g. housing cooperatives, tenant public limited companies). You can also use it to amortize mortgage loans.
Good to know: The financing of vacation houses, vacation apartments or secondary residences with savings from pillar 2 is not allowed.
Your retirement savings are exempt from wealth tax for the duration of the term. The interest earned is tax-exempt until withdrawal.
When your retirement savings are paid out, they will be taxed separately from other income at a reduced rate.
You can withdraw your savings no earlier than five years before reaching the statutory AHV retirement age.
Early withdrawal is possible if
- you want to use your retirement savings to finance your own home (possible every 5 years);
- you leave Switzerland permanently (restrictions apply in EU countries, Liechtenstein, Iceland and Norway);
- you become self-employed;
- you receive a full invalidity pension;
- your vested benefits account has a lower balance than your current annual contribution to your occupational pension plan.
If the pension fund member dies, payment is made to the beneficiaries.