Author: Lucas Widmer
A job change or an extended career break can significantly alter your occupational pension situation, as it involves leaving your current pension fund. This transition allows you to manage your pension assets tailored to your individual needs and preferences through the receipt of vested benefits.
Transferring your vested benefits from the pension fund to a vested benefits foundation presents multiple advantages. It shields your vested benefits from the increasing redistribution within the 2nd pillar. Unlike in a pension fund, you have the autonomy to decide how your money is invested. Thoughtful retirement planning can also offer tax benefits.
Attractive Investment Opportunities
In the 2nd pillar, investment decisions are influenced by two main factors: the BVV2 legal guidelines and the investment policies of the chosen vested benefits foundation. When formulating your personal investment strategy, selecting a vested benefits foundation that aligns with your expectations and personal circumstances is crucial.
Besides traditional investment options like strategy funds, PARSUMO provides additional appealing alternatives. For instance, investing in a personal mortgage can yield substantial, tax-optimized returns with minimal risk.
For investments starting from CHF 1 million, we offer in-house asset management mandates. These can be tailored according to our three distinct investment approaches and modified to suit your personal preferences.
Protection Against Redistribtuion
Removing your vested benefits from the pension fund cycle safeguards them from the escalating redistribution within the 2nd pillar. This redistribution results from the disparity between legally mandated minimum benefits for retirees and the financial capabilities of pension funds, exacerbated by demographic shifts and the low-interest-rate environment. Non-mandatory pension assets are especially susceptible to this redistribution, which can amount to several percent annually, varying by pension fund.
Swiss legislation incentivizes saving within the 2nd pillar by offering tax benefits. For instance, capital gains, dividends, and interest incomes within the 2nd pillar are exempt from taxes. Nonetheless, it’s important to consider the government’s role during the withdrawal of pension assets, as capital withdrawal tax is applicable. This tax varies based on residency and is progressive.
PARSUMO collaborates with vested benefits foundations that specialize in optimizing pension asset withdrawals. Staggering these withdrawals can mitigate tax progression, resulting in a substantially reduced tax burden. For assets exceeding CHF 1 million, this strategic approach can lead to significant tax savings.
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