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Old 23.02.2007, 11:56
Richard Richard is offline
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Re: tax / social security / pension obligations

Following on from what you say, I have a question: I am on the verge of accepting a good job in Zurich, which means a move from the UK.

I haven't built up a lot of pension contributions in the UK, so even tho' the Swiss company pension scheme is OK, I won't have built up enough contributions by the time I retire (10-15 yrs time) to avoid being below the poverty line.

Is there supplementary benefits scheme available in Switzerland that would help to maintain a basic level of dignity in retirement?


Let me answer this question first before tackling the previous one. IF you are going to be working here and I assume you are ca 50 by the sound of your retirement objectives then you will actually be able to accumulate quite a nest egg.
You have three pillars - state scheme which will not over 15 years pay out much.
Company pension scheme which will given your age contribute a minimum of 15% of your annual salary into a pension fund. PLUS you can contribute tax free to the maximum pension your salary will permit - this can be a good tax avoidance vehicle.
Third pillar which is an alternative private tax beneficial scheme. This can then be invested in funds to bring a reasonable return. Here you should be able to accumulate over 15 years well over 100K - current max contribution is 6365 but this increases annually.

So overall based on a salary of circa 100K per year you can expect to have accumulated some 350-400K for your pension plus AHV of perhaps 10K per year. The accumulated pension can then be paid out as a lump sum but it is taxable - ca 7%.

If you search in this forum you will find plenty about how this works etc.
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