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Old 03.08.2015, 22:03
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Swiss and German pension

Hello everyone,

I have a different pension situation and was wondering if anyone has come across a similar case and can bring in some light into the matter...

My husband (Italian citizen) worked in Germany for 4,5 years, then he worked in Switzerland for 5 years.

We were able to get a refund for the Swiss pension. However, the German pension system tells us that he is not entitled to a refund because in total he worked for more than 5 years in Europe, and therefore he can only get a pension when he is 65 years old.

As we withdrew the money from Switzerland, our understanding is that we waved our rights regarding pension for the period in Switzerland, and would, therefore, be entitled to the refund from the German pension system.

Any ideas? Did anyone come across a similar situation?

Any help is welcome
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Old 03.08.2015, 22:38
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Re: Swiss and German pension

I forgot to mention, we live in Brazil now, with no intentions to go back to Europe.
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Old 03.08.2015, 22:46
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Re: Swiss and German pension

Each country has it's own pension laws, to stop people cashing in pensions and buying luxury goods: and then claiming the social welfare.

You will enjoy that German pension when you retire, be thankful you have it.
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Old 06.08.2015, 09:11
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Re: Swiss and German pension

Greetings,

Usually,European countries will not give you your pension funds until you come of retirement age.

In Switzerland, many people that have left to either go back to their European country of origin or elsewhere, have been given their pension and have used those funds to buy real estate (since it's cheaper) or start their own business.

Although, I have heard now that if you move to a European Member Country, you may not even have the chance to take the funds with you anymore. It may have changed.

Please not that if you wish to take the funds with you, you will be taxed under the cantonal regime in which you are based and leaving from.

Another option would be, if you do not need to take the funds with you, it is important to consider the taxes you have to pay when you do. In this case, it is wise to open a special account with a Kantonalbank in one of those tax heaven Cantons (Pfäffikon - Zug) and let the funds sleep until you need them. The cost of opening an account is 500.00 Chf

Regards
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Old 06.08.2015, 11:01
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Re: Swiss and German pension

Correct, if you have worked for more than 5 years in Germany (EU) you will not get a refund but only receive your pension when you retire. Probably not much as you do not build up much in 5 years in Germany
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Old 06.08.2015, 12:15
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Re: Swiss and German pension

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Each country has it's own pension laws, to stop people cashing in pensions and buying luxury goods: and then claiming the social welfare.

You will enjoy that German pension when you retire, be thankful you have it.

4.5 years contributions won't bring enough to pay your supermarket bill.
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Old 06.08.2015, 12:20
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Re: Swiss and German pension

Quote:
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Greetings,

Usually,European countries will not give you your pension funds until you come of retirement age.

In Switzerland, many people that have left to either go back to their European country of origin or elsewhere, have been given their pension and have used those funds to buy real estate (since it's cheaper) or start their own business.

Although, I have heard now that if you move to a European Member Country, you may not even have the chance to take the funds with you anymore. It may have changed.

Please not that if you wish to take the funds with you, you will be taxed under the cantonal regime in which you are based and leaving from.

Another option would be, if you do not need to take the funds with you, it is important to consider the taxes you have to pay when you do. In this case, it is wise to open a special account with a Kantonalbank in one of those tax heaven Cantons (Pfäffikon - Zug) and let the funds sleep until you need them. The cost of opening an account is 500.00 Chf

Regards

It's quite possible to take cash when leaving to live in the EU, it depends if compulsory insurance is required in the country your going to.
Your final tax liability depends on how it's taxed in the country your resident in when you get the payout.
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