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| Not quite sure what the intended tone of this mail was.
But, my 3rd pillar is all capital.
My 2nd pillar includes an option for the capital to be paid out in the event of death pre retirement. A widow gets a pension but can elect to get the capital less payments received. Not everyone will have a widow, and so you can nominate the beneficiary (not sure how this interacts with spousal rights if any).
Clearly with an annuity rate at c 6% the pension is an attractive option, but there may be situations where the cash is needed, or the 40% haircut on the widows pension is not attractive (say you died almost at retirement age).
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The 27th October 2009 edition of the Swiss TV program "Kassensturz"
http://www.sf.tv/sendungen/kassenstu...-pensionskasse
reports a tragic case.
The facts for those who cannot read German:
Man aged 52 died of cancer. He had no wife but a son and daughter in their 20s. He had borrowed CHF 110k from his pension to buy a house. The pension fund says that the son and daughter do not get any pension capital. Son and daughter must sell house and repay the pension fund the borrowed money!
Hence, do not asume the pension fund will pay out capital of deceased. Not even the progeny have legal claim to get deceased's capital.