- The interest you receive is not subject to income tax and is net of Switzerland's withholding tax.
- The money in your account is not subject to wealth tax; it is taxed at a reduced rate when you take it out.
- When you die, your vested benefits go to the legal beneficiaries and are not treated as part of your estate.
If you leave your employer before you become eligible for benefits, your vested benefits are transferred to your new employer’s pension fund. If you don’t have a new employer, the vested benefits will be deposited in a vested benefits account in your name. The account will be fully secure and earn interest at a higher rate than a typical savings account. You will receive the benefits when you reach the legal retirement age, or up to five years before or after the legal retirement age.
A vested benefits account is designed for three main situations:
- You temporarily leave your job and no longer pay into a Swiss occupational pension fund: your pension assets will keep earning interest until you sign up with a new fund.
- You start a new job but your new employer's pension fund does not accept all of your vested pension benefits.
- You decide to become self-employed but don't want to tap into your retirement savings right away.
Fees and conditions
Availability of funds