Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 19.06.2011, 09:42
Junior Member
 
Join Date: Apr 2009
Location: Not switzerland
Posts: 74
Groaned at 0 Times in 0 Posts
Thanked 86 Times in 19 Posts
henrytkhau has earned some respecthenrytkhau has earned some respect
How do expats afford retirement in Zürich?

After a year in a well paid job I am still finding prices here quite shocking (especially after trips to England, Hong Kong, Germany and Prague!!). I saw a pensions post that said after 40 years of paying pillar 1 and 2 you might get a pension of CHF c70k....but for expats who have only been here 20-25 years, how could they afford a retirement with eating out and foreign trips?

Even the few swiss I do know (who presumably get the full 70) either live an hour away, become landlords or plan to leave the country!!!

Apologies if this is a very naive question
Reply With Quote
The following 2 users would like to thank henrytkhau for this useful post:
  #2  
Old 19.06.2011, 10:12
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 3,471
Groaned at 17 Times in 15 Posts
Thanked 1,996 Times in 1,189 Posts
CH_Me has a reputation beyond reputeCH_Me has a reputation beyond reputeCH_Me has a reputation beyond reputeCH_Me has a reputation beyond repute
Re: How do expats afford retirement in Zürich?

I started working here at 26 years old and paid extra into my pension to top it up. Maybe you could do that.

I could see myself enjoying retirement here. Most of my neighbours are retired. I don't think they eat out often and they don't pay rent. Foreign trips seem to be common though and we live in a quiet area close to town (4 mins walk to the shops).

How often do you eat out? IMO this is over rated and not good for you. For the kids i'm sick of every dish having chips and for me getting a dish I could do better myself and I have to drink a rubbish wine that's ridiculously marked up with it. We eat lunch out when I work though and hubby won't eat a cold, packed lunch.
Reply With Quote
The following 2 users would like to thank CH_Me for this useful post:
  #3  
Old 19.06.2011, 10:14
Corbets's Avatar
Forum Legend
 
Join Date: Mar 2007
Location: DK - previously Zug
Posts: 3,321
Groaned at 168 Times in 122 Posts
Thanked 6,707 Times in 2,237 Posts
Corbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond repute
Re: How do expats afford retirement in Zürich?

Quote:
View Post
After a year in a well paid job I am still finding prices here quite shocking (especially after trips to England, Hong Kong, Germany and Prague!!). I saw a pensions post that said after 40 years of paying pillar 1 and 2 you might get a pension of CHF c70k....but for expats who have only been here 20-25 years, how could they afford a retirement with eating out and foreign trips?

Even the few swiss I do know (who presumably get the full 70) either live an hour away, become landlords or plan to leave the country!!!

Apologies if this is a very naive question
We live an hour away, become landlords, or leave the country, of course.

It's the same as retiring in any other country. If you plan to keep the same lifestyle at retirement, you need to be saving a significant portion of your salary now. Some of your pillar contributions can be backfilled to a certain age (22, I think) and you should look into other financial products designed to supplement that. You should also look into what options you have for transferring your existing retirement funds over, if you really plan to stay here.

In short, plan ahead!
Reply With Quote
This user would like to thank Corbets for this useful post:
  #4  
Old 19.06.2011, 10:22
economisto
 
Posts: n/a
Re: How do expats afford retirement in Zürich?

You'd have to simply pay much, much more into a pension, or save privately or buy a property and build up your equity in that.
Reply With Quote
The following 2 users would like to thank for this useful post:
  #5  
Old 19.06.2011, 10:42
Forum Legend
 
Join Date: May 2007
Location: Lugano
Posts: 6,504
Groaned at 129 Times in 95 Posts
Thanked 7,882 Times in 3,674 Posts
Mrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond repute
Re: How do expats afford retirement in Zürich?

Quote:
View Post
You'd have to simply pay much, much more into a pension, or save privately or buy a property and build up your equity in that.
Buying a property could significantly reduce the amount you are currently paying for housing and could also reduce your taxes. Becoming your own landlord will not only give you a certain degree of financial freedom but peace of mind. If you like where you live you might even eat at home more often.
Reply With Quote
The following 3 users would like to thank Mrs. Doolittle for this useful post:
  #6  
Old 19.06.2011, 11:04
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,751
Groaned at 284 Times in 189 Posts
Thanked 18,639 Times in 7,827 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: How do expats afford retirement in Zürich?

- save more for retirement (don't think this will work given the crisis, unless you are very careful in the assets your pension is invested in)
- build a business with an income stream that will survive into your pension without your direct involvement
- acquire one property to live in (and hope that Eigenmietwert is abolished)
- acquire one or more properties to rent out in the same country (inflation-indexed income without currency risk)
- cut down on spending (no eating out etc.)
- change lifestyle (don't live in zurich, make growing your own fruit/veg your new hobby along with calling the police about the noisy youth)
__________________
By replying to this post, you hereby grant Phil_MCR a royalty-free license to use, in any way, anything posted by you on the internet. If you do not accept, stop using EF and delete your account.
Reply With Quote
The following 3 users would like to thank Phil_MCR for this useful post:
  #7  
Old 19.06.2011, 11:54
swisspea's Avatar
Forum Legend
 
Join Date: May 2008
Location: From one side of lake Zurich t
Posts: 6,354
Groaned at 42 Times in 31 Posts
Thanked 6,448 Times in 2,964 Posts
swisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond repute
Re: How do expats afford retirement in Zürich?

my parents plan to never retire. They both have built careers that very much fill their lives, and business interests that may well carry them into retirement...Oh, and they have poured a lot of money into their pension fund as soon as the kids moved out...

I hope that having kids early in life (I had my first child at 22) and no more from here on (35 for the last one for my husband) means that the kids move out of home and are financially independent and we still have 10-20 years of our working lives ahead of us to really get ahead...

That, and I expect if retirement comes, it will have to be a very simple one...
Reply With Quote
This user would like to thank swisspea for this useful post:
  #8  
Old 19.06.2011, 12:21
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: How do expats afford retirement in Zürich?

Quote:
View Post
You'd have to simply pay much, much more into a pension, or save privately or buy a property and build up your equity in that.
To be honest I don't think pensions are a very good investment, whatever the advisor tells you!

I was supposed to be able to take my UK personal pension at 50, in 49 & they changed the rules now it's 55.
My personal investments in the US stock market have done was better than any pensions.

Whats important is look how your pension income will be taxed, go & live in Malta for example & your only taxed on income remitted the year it was earned, so you can effectively live tax free.

I could actually retire at 50 in Malta, however my pension planning will not have helped in any way!

Buying a house in Switzerland creates a tax liability, not sure that is something I would want in retirement.
Reply With Quote
The following 4 users would like to thank fatmanfilms for this useful post:
  #9  
Old 19.06.2011, 12:46
Forum Legend
 
Join Date: Sep 2006
Location: na
Posts: 11,248
Groaned at 37 Times in 33 Posts
Thanked 26,732 Times in 8,253 Posts
meloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond repute
Re: How do expats afford retirement in Zürich?

I very much doubt we will retire in Switzerland - and not only for economic reasons.

(Interesting that many of the Swiss I know are planning on retiring abroad as well.)

First, I am not counting on our pensions.

As Americans it makes little sense tax-wise to invest in the Swiss pension system beyond the mandatory, and I fully expect that US Soc Sec will be gone or at the very least significantly reduced in the next decade or so. If there is anything left by the time we retire, that will be a nice little extra - but given the perilous state of most national pensions we have made alternative plans.

During one's active senior years Switzerland has much to offer - central location to travel Europe, excellent infrastructure. But once past the active stage I would be wary of staying here - Switzerland is (culturally and logistically) a tough place for the elderly, especially when one has no family here to help.

With that in mind, we will likely leave with enough time to integrate ourselves into our new community - wherever that may be.
Reply With Quote
This user would like to thank meloncollie for this useful post:
  #10  
Old 29.06.2011, 00:51
Junior Member
 
Join Date: Apr 2009
Location: Not switzerland
Posts: 74
Groaned at 0 Times in 0 Posts
Thanked 86 Times in 19 Posts
henrytkhau has earned some respecthenrytkhau has earned some respect
Re: How do expats afford retirement in Zürich?

Thanks for your answers, which for me boil down to: "Hello Canada"!!
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What can I afford? PLEASE HELP! snookum Daily life 52 23.07.2013 08:12
Does this afford comfortable living... awdhil Daily life 17 24.11.2009 13:29
newbie trying to work out if I can afford to live box of frogs Daily life 20 02.09.2009 16:48
Can I afford to live in Basel? Soly Housing in general 6 27.04.2008 22:03


All times are GMT +2. The time now is 20:06.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0