View Single Post
  #14  
Old 28.03.2020, 11:36
Pachyderm's Avatar
Pachyderm Pachyderm is offline
Forum Veteran
 
Join Date: Feb 2012
Location: Zurich
Posts: 1,516
Groaned at 74 Times in 53 Posts
Thanked 3,314 Times in 1,131 Posts
Pachyderm has a reputation beyond reputePachyderm has a reputation beyond reputePachyderm has a reputation beyond reputePachyderm has a reputation beyond reputePachyderm has a reputation beyond reputePachyderm has a reputation beyond repute
Re: Retirement dilemma

Quote:
View Post
My employer has never given severance packages, even in normal times, apart from Executive Committee members, who negotiate.

It's not an easy decision. I am likely to be temporarily laid off in the near future and would receive 80% of my salary for doing nothing. But that doesn't alleviate the dilemma because a) I would retire later and the conversion rate would likely be reduced in that time and b) my pension pot wouldnt be filled either by me or by my employer during this time, though it would mean that I wasn't touching it I guess.
Not some great severance package, no, but you'll get your holidays paid up, and many companies will pay an estimated bonus payment. It's a lump of cash + your Pillar 2 contributions repaid. (Note -- you don't get it in cash unless leaving the country. It will be paid into a holding account.)

It's just something to think about. In this difficult period when many employers are thinking of laying people off and downsizing, they may welcome volunteers.

I'm not sure what the Pillar 2 choices are if you retire here but if you were leaving the country you'd get your pension pot paid in cash. Not sure of your nationality but the UKP has weakened to the point where exporting CHF to the UK offers quite a bit more than it did just a few weeks ago.

As for likely conversion rates if staying here, I can't offer any insights. But you raise a good point -- that the financial consequences of this situation will ripple down the years.