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Old 04.07.2014, 11:39
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Leaving Switzerland, Swiss Pension to UK

Hi All,

I am so confused. My pension here in Switzerland is made up as follows:

Pillar 1 - Normal
Pillar 2 - Employee and Employer contributions
Pillar 3 - Life Insurance linked.

I have some questions

1. Can I take Pillar 2 and 3 as cash if I leave Switzerland permanently and move back to the UK? (EU member state??)

2. What happens to Pillar 3, can I take it as cash?

3. Can I use Pillar 2 to buy a house in the UK?

I have read similar posts already but they are all dated back 2005 to 2007.

All help greatly appreciated.
Thank you!
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  #2  
Old 04.07.2014, 12:00
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Re: Leaving Switzerland, Swiss Pension to UK

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Hi All,

I am so confused. My pension here in Switzerland is made up as follows:

Pillar 1 - Normal
Pillar 2 - Employee and Employer contributions
Pillar 3 - Life Insurance linked.

I have some questions

1. Can I take Pillar 2 and 3 as cash if I leave Switzerland permanently and move back to the UK? (EU member state??)

2. What happens to Pillar 3, can I take it as cash?

3. Can I use Pillar 2 to buy a house in the UK?

I have read similar posts already but they are all dated back 2005 to 2007.

All help greatly appreciated.
Thank you!
Historically you could take the cash to buy a main residence in the UK, however it may be liable to UK tax as income so it might not be the best thing to do. However the rules are about to change.

As your 3rd pillar is linked to life insurance, you may well get nothing back as it went in commission to a life insurance salesman. You have to ask the company.
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Old 04.07.2014, 12:15
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Re: Leaving Switzerland, Swiss Pension to UK

Did you see this thread?

Second pillar pension cash withdrawls to be banned
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Old 07.07.2014, 11:31
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Re: Leaving Switzerland, Swiss Pension to UK

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Hi All,

I am so confused. My pension here in Switzerland is made up as follows:

Pillar 1 - Normal
Pillar 2 - Employee and Employer contributions
Pillar 3 - Life Insurance linked.

I have some questions

1. Can I take Pillar 2 and 3 as cash if I leave Switzerland permanently and move back to the UK? (EU member state??)

2. What happens to Pillar 3, can I take it as cash?

3. Can I use Pillar 2 to buy a house in the UK?

I have read similar posts already but they are all dated back 2005 to 2007.

All help greatly appreciated.
Thank you!

1. you cannot take 2nd pillar at all if you are moving the the EU. You can only take it if you are leaving the EU permanently.


2. You can take pillar 3 at any time after the first few years of ''risk'' are paid (typically 3 years) however, you would lose almost half the money you have paid in. It is only after about the 15th year that you can use your 3rd pillar and get the same amount of money you had paid every year or more.


3. No
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Old 07.07.2014, 11:50
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Re: Leaving Switzerland, Swiss Pension to UK

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Hi All,

I am so confused. My pension here in Switzerland is made up as follows:

Pillar 1 - Normal
Pillar 2 - Employee and Employer contributions
Pillar 3 - Life Insurance linked.

I have some questions

1. Can I take Pillar 2 and 3 as cash if I leave Switzerland permanently and move back to the UK? (EU member state??)

2. What happens to Pillar 3, can I take it as cash?

3. Can I use Pillar 2 to buy a house in the UK?

I have read similar posts already but they are all dated back 2005 to 2007.

All help greatly appreciated.
Thank you!
Reply:
1. Yes you can apply for these. The process time will be at least 6 months before they send you the money in the UK bank account. You need to prove you are leaving the country.
3. Basically yes, till the age of 55 you can apply for a mortgage, but could only be valid in Switzerland since you are leaving.
Hope this helps!
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  #6  
Old 07.07.2014, 20:01
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Re: Leaving Switzerland, Swiss Pension to UK

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1. Can I take Pillar 2 and 3 as cash if I leave Switzerland permanently and move back to the UK? (EU member state??)

2. What happens to Pillar 3, can I take it as cash?

3. Can I use Pillar 2 to buy a house in the UK?

I have read similar posts already but they are all dated back 2005 to 2007.
Well, there are some old threads that have fairly recent updates. All the above has been well covered.

To quickly answer your Qs though:

1. Pillar 2 has an obligatory part and potentially (depending on your level of contribution) a super-obligatory part. If you move to an EU/EFTA state (which UK is currently) and would be subject to mandatory social insurance contributions (most working age people are) you may NOT cash in the obligatory part, except for purchase of your own residence or to start a business. The super-obligatory part (any accrued benefits above the mandatory level) may still be cashed in fully, but as mentioned, there are proposals being considered which may restrict this in future. There will be a witholding tax deduction made on any withdrawal, which if you are no longer CH resident will vary according to the registered canton of your benefits institution. Also, as FMF mentions, be sure to check if early withdrawal of pension benefits would generate a tax liability in your new resident country.

2. Pillar 3 can be cashed in with no restriction on de-registering from CH. However, be aware that if your Pillar 3 is an insurance based product, you may get back less than you paid in, especially if you have held it for a relatively short time.

3. In principle yes, if it is for your main residence, but I have read that this can be difficult to arrange as you need to align the UK conveyancing/mortgage process with the Swiss pension cash-out process. I believe I read somewhere on here that it has been successfully done.
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Old 09.07.2014, 22:25
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Re: Leaving Switzerland, Swiss Pension to UK

Hi,

So who is it that you contact to facilitate these things and who can give you definitive figures?? Does any one have any names or numbers and their costs?

Thanks in advance
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  #8  
Old 10.07.2014, 08:15
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Re: Leaving Switzerland, Swiss Pension to UK

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Hi,

So who is it that you contact to facilitate these things and who can give you definitive figures?? Does any one have any names or numbers and their costs?

Thanks in advance
"What you need to do

Contact the pension fund you paid into with your last employer or the vested benefits institution where you have an account or a policy. Notify them of your departure from Switzerland and provide them with the necessary documents."

https://www.ch.ch/en/withdraw-pension-early
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This user would like to thank Medea Fleecestealer for this useful post:
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