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Old 10.03.2015, 21:47
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Third pillar and Withdraw

Hi All,

I subscribed a third pillar this year thinking it was a good idea. I just realized today that if I want to withdraw after 3 years (I transfer 6000.- per year) because I want to leave Switzerland, I will have 10 000.- of release or 15 000.- as transformation.

I don't intend to leave Switzerland soon, but it will probably happen one day or another. And unfortunately I did not realize the amount I will be able to withdraw from my third pillar will be so low. It does not seem to be a good idea anymore.

What is this transformation amount?

Could anybody clarify for me?

Many thanks.
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Old 10.03.2015, 23:06
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Re: Third pillar and Withdraw

I think that you can withdraw the full amount of your pillar 3A account upon leaving Switzerland, but this will be subject to tax (which is usually at a lower rate than when you initially paid in). I've been told that by the guy who manages my taxes and also from reading online... Unless you have some kind of life insurance pillar 3?
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Old 10.03.2015, 23:08
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Re: Third pillar and Withdraw

Exactly. It's an insurance 3a
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Old 11.03.2015, 09:59
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Re: Third pillar and Withdraw

Edit: Sorry just realised it's a life insurance one. Ignore the below... I'm not sure how these insurance ones work.



So you should be able to withdraw the full amount when you leave Switzerland.

Is it held with a bank?? If you go to UBS Fisca 3a account webpage you can see there are forms to request withdrawal of the funds. One of the options on the form is 'permanently leaving Switzerland'.

I think if you were then to return to Switzerland you would need to pay back in to the pillar 3a, but I'm not 100% on this.

Last edited by Enohzee; 11.03.2015 at 10:12.
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Old 11.03.2015, 12:25
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Re: Third pillar and Withdraw

Get a time machine. Tell your past self to read the fine print. Then hope your past self refrains from enrolling in insurance pillar 3a, but opens a bank account 3a. Cancel bank account 3a and get full amount when you leave Switzerland.
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Old 11.03.2015, 13:42
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Re: Third pillar and Withdraw

Out of interest, are you now tied in to contributing 6,000 per year for the next 2 years?!
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Old 14.03.2015, 13:14
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Re: Third pillar and Withdraw

Good question.

I think I can change the amount I want to invest each year. I could also stop paying but then I will lose the entire amount of money
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Old 07.05.2015, 15:13
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Re: Third pillar and Withdraw

Just a small question.

The whole point of 3a seems to be that I pay in now, and subtract what i pay from my taxable income, so saving taxes.

But when I'm a pensioner I will pay taxes on the money I withdraw.

The logic is that my overall income will be lower then, so I'll still be ahead.

But what if I'm not planning to retire in Switzerland but will be in a country with a higher tax regijme. Is there still any point in doing 3a? I can get far better returns if I invest in funds and things.
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Old 07.05.2015, 15:49
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Re: Third pillar and Withdraw

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Just a small question.
But when I'm a pensioner I will pay taxes on the money I withdraw.

The logic is that my overall income will be lower then, so I'll still be ahead.
If you go with 3a bank accounts, then your overall income at withdraw point does not mater. You will be taxed at a special rate. You can only withdraw the full amount of a single bank account. For best tax saving you will need up to four 3a bank accounts. Four years before you retire you cash out the first account, next year the second, ... , until a retiring point you cash out the last one.

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But what if I'm not planning to retire in Switzerland but will be in a country with a higher tax regijme. Is there still any point in doing 3a?
AFAIK the foreign country should and can not tax the cash out of a 3a bank account. It may be different if you went with an insurance scheme where you will get a rent.


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I can get far better returns if I invest in funds and things.
This may be even true if you stay in Switzerland. It all depends on your risk, luck and available free money.
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Old 07.05.2015, 15:56
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Re: Third pillar and Withdraw

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Just a small question.

The whole point of 3a seems to be that I pay in now, and subtract what i pay from my taxable income, so saving taxes.

But when I'm a pensioner I will pay taxes on the money I withdraw.

The logic is that my overall income will be lower then, so I'll still be ahead.

But what if I'm not planning to retire in Switzerland but will be in a country with a higher tax regijme. Is there still any point in doing 3a? I can get far better returns if I invest in funds and things.
Hopefully the fund will grow several fold, then you will pay more tax than you ever saved. Investments made to save tax rarely are great investments.

The tax rules of the country your living in at the time you take the pension may well require further tax, just because they may not today does not mean they won't in the future.
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