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Old 02.09.2019, 10:49
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Re: 3rd Pillar Pension Fund

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Kind of a general question regarding this 3rd pillar thing. I've been putting money in but this year I've started to have doubts about it...

3rd pillar is good if your plans are to stay in CH. But what if I want to move to for instance Spain (or somewhere else) before I retire ?

My fear is that when I ask for the money be paid out (possible after 60) in a lump sum, it will count for that years income tax. The tax on it is likely to be much higher than the tax saved by putting it in 3rd pillar. So it would be better to just pay the (low) income tax now than (high other countries) income tax later.

Am I right with this train of though ?
Exactly, it depends on the tax rules of the country you are in when you cash in.
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  #482  
Old 02.09.2019, 11:47
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Re: 3rd Pillar Pension Fund

Cash it out before you leave Switzerland.

Tom
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  #483  
Old 02.09.2019, 14:38
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Re: 3rd Pillar Pension Fund

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Cash it out before you leave Switzerland.

Tom
But what if you're not 60 yet ?
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  #484  
Old 02.09.2019, 18:13
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Re: 3rd Pillar Pension Fund

If you stay in Switzerland can you stage the payments for instance over 5 or 10 years or thatís not matter if you cash it in at once?
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Old 03.09.2019, 08:41
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Re: 3rd Pillar Pension Fund

Yes but the thing is I expect (but you never know) to have left CH by the time I am 60, so will need to pay income tax on it in the new country. I think you can only split the payment into two parts by having 2 accounts, but not more ...? Anyway I think Ill stop with the 3rd pillar and just keep it in a normal savings ccount, and pay the low CH tax...
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Old 06.09.2019, 22:22
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Re: 3rd Pillar Pension Fund

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Yes but the thing is I expect (but you never know) to have left CH by the time I am 60, so will need to pay income tax on it in the new country. I think you can only split the payment into two parts by having 2 accounts, but not more ...? Anyway I think Ill stop with the 3rd pillar and just keep it in a normal savings ccount, and pay the low CH tax...
When this should be undertaken may be a question of timing, as many countries levy taxes on a lump-sum payment from a Swiss private pension fund. It is therefore often advisable to cash the pillar 3a shortly before departure, and have it taxed at the very favorable Swiss tax rates on capital payments.

Source: http://www.helloswitzerland.ch/-/wha...e-switzerland-

So i would assume it shouldn't be an issue.
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