If you are leaving Switzerland and have pension funds, several options are available for you. For example, you can have your benefits paid out if you are leaving the country permanently. At the same time, you may have tax obligations. Here is some helpful information about what happens if you have a pension, and you decide to leave Switzerland.

Pension benefits after you leave Switzerland

When you leave a job in Switzerland, your pension fund will usually move to your new employer’s pension scheme. This is the case if it is under a Pillar 2 or occupational pension under the Swiss pension system.

If you are leaving Switzerland, your pension fund will not move to a new employer’s scheme. In these cases, your pension funds will move into a deposit account. This also happens if you decide to take a sabbatical or leave a job without a new role lined up.

How do I access my pension if I leave Switzerland?

When leaving Switzerland, your pension funds can be accessed. For example, you can withdraw all of your pension funds for Pillar 3a pensions. This is allowed, regardless of which country you are moving to.

You can also withdraw funds with a Pillar 2 pension. If you move outside the EU, there are generally no restrictions when it comes to withdrawing your pension fund assets. Regardless of where you are moving, a Pillar 2b pension can be cashed out, even within the EU/EFTA.

Rules for a Pillar 2a pension are a bit different. Again, you can access funds if moving outside the EU/EFTA, like Pillar 2b. If you move within the EU/EFTA, you can only access part of your Pillar 2a pension. Some of the pension remains blocked until you turn 60 or if you are buying a new home.

You will be required to pay withholding tax for all Pillar 2 and Pillar 3a pension withdrawals. The rate varies across the country, and it depends on which canton the pension is held in. You will also need to submit proof of deregistration from the local municipality where you have lived. If you are married, your partner also needs to approve.

Keeping your pension funds in Switzerland

If you’re leaving Switzerland but plan to leave your pension funds in the country, they’ll be in a deposit account. These accounts usually do not offer a lot of flexibility for investment. If you want to grow your savings, this may not be the right choice.

When moving to an EU or EFTA member country, your Pillar 2a pension will go into a vested benefit account. These are held by Swiss vested benefits foundations. The benefits will be held until you reach your retirement age. You can withdraw funds in some circumstances, though a withholding tax is applied.

You can save money by transferring your pension benefits into a vested account. Chevrolet Consulting GmbH can help. I work with trusted foundations for vested pension benefits that are registered in the canton with the lowest tax rate. By transferring your funds in this way, you can save up to half your money on tax!

How can I save money when leaving Switzerland with pension funds?

Chevrolet Consulting GmbH helps you navigate the rules and regulations when you are leaving Switzerland with pension funds. With more than 30 years of experience in banking, I’m fully equipped to deliver expert financial management expertise.

As a client of Chevrolet Consulting GmbH, you can expect the following:

• Expert guidance through complex processes.
• Simple and straightforward steps to open a vested benefit account.
• Hassle-free and prompt payment transfers to anywhere in the world.

Request a free consultation

If you plan on leaving Switzerland and pension funds are involved, you will no doubt have a lot of questions. Chevrolet Consulting GmbH is a leading expert in occupational benefits, and I am here to help. You can save on tax if you have investments under Pillar 2 or 3a.

To learn more about how I can help you save, book your free initial consultation