You can optimize your tax situation when saving for your retirement and also when withdrawing your retirement savings.
When saving for your retirement, you benefit from more than just a preferential rate of interest. The amounts you invest also reduce your taxable income and your tax burden. Three options:
1. Save tax with pillar 3a
Retirement planning pays off. Save with pillar 3a and benefit twice over: in addition to enjoying a preferential rate of interest, you can also deduct the amounts you save from your taxable income.
Taxable income of CHF 75,000
Taxable income of CHF 150,000
With a taxable income of CHF 75,000, the tax savings amount to CHF 1,400 (rounded)
With a taxable income of CHF 150,000, the tax savings amount to CHF 2,300 (rounded)
Conclusion: Higher incomes and thus higher levels of tax progression mean that the tax savings are also higher.
Basis: resident in Bern, married, no children, religion not taken into account, taxable wealth 0, as at 2015
The UBS tax savings calculator with pillar 3a shows you how you can save tax with a restricted pension plan. Please note that the maximum annual contribution for employed persons with an occupational pension plan is CHF 6,768, while for those without an occupational pension plan this figure is 20% of annual salary, with a maximum of CHF 33,840 (as at 2015).
2. Save tax by buying into a pension fund
Making voluntary payments into your pension fund, for example to increase your pension fund benefits, can be advantageous. You benefit in three ways:
- The purchase is tax deductible.
- By making staggered purchases over several years, you break the tax progression, which in turn reduces your level of tax.
- You benefit from preferential rates of interest.
It’s best to decide whether a purchase makes sense given your personal circumstances after you’ve comprehensively weighed all the pros and cons. We will be happy to help you to do this.
Save more tax through repeat payments
Conclusion: with staggered purchases of your retirement fund over 3 years, your tax benefit will be CHF 500 higher (rounded) compared to a one-time purchase.
Basis: resident in Bern, married, no children, religion not taken into account, taxable wealth 0, taxable income 100,000, as at 2015
3. Save tax through staggered capital withdrawals
Planning your retirement in good time means you can also save tax when withdrawing your retirement savings. Staggered withdrawals allow you to benefit from a lower tax burden.
Tax savings through staggered withdrawals of your retirement savings, for example with pillar 3a
Conclusion: with staggered withdrawals of your retirement savings over 2 years, your tax benefit will be CHF 3,300 higher (rounded) compared to a one-time withdrawal.
Basis: resident in Bern, married, no children, religion not taken into account, as at 2015
We would be happy to help you work out when you can benefit and how you should best proceed during a personal consultation.
You can make some initial calculations using the UBS calculator for the taxation of retirement capital:
Do you want to make the most of your options? We will be happy to support you.