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| Thanks Richard for this useful post!
I was only thinking of setting one of these funds up this week. Would you be good enough to explain some brief details about this pension, like is there a minimum/maximum you can contribute? Also how is this effected if you leave Switzerland? (not planning to at present but you never know!)
Many thanks and yes you are quite right I only read it because it was in 'Daily Life'
Regards Catherine | |
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Yes there is a maximum and it is 6365 for year 2007. Minimum isn't given but most say 1K. If you leave Switzerland you can cash it in as you can periodically when there is "enough" in the pot. This is more tax efficient than leaving it long term till the pot is 200K or so. You don't pay tax on the contributions nor on the interest but you do on the withdrawals.
3rd pillar is more or less the Swiss equivalent to AVCs Additional Voluntary Contributions. It sits in a totally private pot (or pots you can change each year if you want) and the annual max contribution is published for the year - usually increasing annually.