Swiss Pension

Switzerland has become a huge attraction to highly skilled foreign workers due to the excellent quality of life the country has to offer. From higher wages to lower rates of taxation, Switzerland has proven to be one of the main hubs for foreign workers within Europe.

For most internationals working in Switzerland, they will also start paying into a company pension scheme known as the 2nd of the 3 Pillar Swiss Pension system. This 2nd pillar pension offers multiple benefits for the individual while they are based in Switzerland or on an overseas swiss employment contract. However, although Switzerland is a key attraction for expats, many either return to their home country or take up another opportunity in a different country. Therefore, many of these individuals forget about the 2nd pillar pension they had previously paid into when they leave Switzerland, or they leave it behind without any direction.

Currently, there are over 600,000 dormant pension accounts in Switzerland where the owner has left no instructions regarding their future management. Unlike most company pension schemes, these accounts are not invested into the stock market. Low-interest rates provided can therefore risk the erosion of the buying power of your account through inflation. Additionally, when it comes to drawdown, it is typically paid out as a single lump sum at retirement age after being taxed at source in Switzerland based on the tax rate of the Canton where your company pension is based. Depending on where you are a tax resident at the time, this can have significant additional tax consequences.

We help individuals who have previously worked in Switzerland, understand how they can capitalise on the Swiss Pension account they may have abandoned. For example, you now have the option to transfer your Swiss Pension to a lower tax Canton and then transfer it out from there with lower tax implications. You can then opt to re-invest the pot locally under your deVere consultant’s guidance and withdraw from this pot flexibly.

This gives you the ability to transfer out of your pension at a lower tax level and control the tax liability upon withdrawal, while simultaneously reinvesting your pot in line with a tailored investment strategy to match your personal circumstances.

If you would like more information on how to trace and take back control of your Swiss Pension account, then please submit your details through the “Contact Us” section. A member of our Swiss Pension Team will be in touch with you shortly to explain your options based on your current circumstances.

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Media contact

deVere Europe’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines. Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Europe’s Head of Public Relations on george.prior@devere-europe.com or call +44 2071220925