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-   -   Leaving to live in the EU & cashing in a Swiss Pension (https://www.englishforum.ch/finance-banking-taxation/234834-leaving-live-eu-cashing-swiss-pension.html)

fatmanfilms 05.06.2015 14:23

Leaving to live in the EU & cashing in a Swiss Pension
 
If you leave Switzerland to live in the EU it's often possible to take your pension fund in full as many countries don't require compulsory insurance.

Further info from http://www.sfbvg.ch/xml_3/internet/E...on/d51/f62.cfm

I have today received my full Pillar 2 fund in CASH, I did not bother to move the fund to a lower tax canton as the saving was less than 2% of the capital & I thought it would take extra time & not worth the hassle.

Getting confirmation from the LOB fund took almost 2 months, payout within 1 week of receiving the signed paperwork from myself & proof of not marrying since leaving CH.

defcon3 05.06.2015 23:20

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
You leave us, sensei?.. Well, I certainly hope you will stick around and share more tips - I, for one, have learned a great deal from you for which I thank you.

Best of luck, wherever you settle next :cool:

plumtree 09.09.2015 08:29

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Also possible for permanent move of residence to non-EU countries: the EFTA countries Norway and Iceland. Not possible for Liechtenstein.

http://www.englishforum.ch/2446452-post12.html

Metallising 21.01.2016 22:15

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
I'm in the process of leaving the country, when asked my insurance company how I could withdraw the 2nd pillar they informed me I could only take around 20% (this number may vary) by law, the rest has to stay in Swiss. I specified I'm moving to a EU country.

fatmanfilms, how did you do to take the fund in full?

twenty 21.01.2016 22:22

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Originally Posted by Metallising (Post 2522630)
in Swiss.

oh you'll be sorry you did that

miniMia 22.01.2016 00:01

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Originally Posted by Metallising (Post 2522630)
I'm in the process of leaving the country, when asked my insurance company how I could withdraw the 2nd pillar they informed me I could only take around 20% (this number may vary) by law, the rest has to stay in Swiss. I specified I'm moving to a EU country.

fatmanfilms, how did you do to take the fund in full?

Ok... I'll do it. The country is called Switzerland. Swiss is the adjective and the airline. ;) :P

You can only take part of your 2ieme pillier to Portugal if you have reached retirement age.

Details are here.

http://aso.ch/fr/conseils/vivre-a-le...du-2eme-pilier

Guest 22.01.2016 00:14

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Leaving again- didn't you you had come back Metalising. Good luck- again.

Mia the way I read it, it is the other way round. Fatmans is almost at retirement age, so he can take it:

En revanche, les personnes qui, à l'âge de la retraite quittent définitivement la Suisse pour l'un des pays mentionnés plus haut pourront, même après le 1er juin 2007, retirer leur capital de 2ème pilier

(however, persons who, at the age of retirment leave Switzerland definitely for on the above mentioned countries, will be able to, even after 1st June 2007, take the capital of their second pillar.

Metalising is a young man of employment age, and therefore won't be able to do so. Same happened to a young friend of our who left to go back to the UK recently.

fatmanfilms 22.01.2016 07:59

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Leaving again- didn't you you had come back Metalising. Good luck- again.

Mia the way I read it, it is the other way round. Fatmans is almost at retirement age, so he can take it:

En revanche, les personnes qui, à l'âge de la retraite quittent définitivement la Suisse pour l'un des pays mentionnés plus haut pourront, même après le 1er juin 2007, retirer leur capital de 2ème pilier

(however, persons who, at the age of retirment leave Switzerland definitely for on the above mentioned countries, will be able to, even after 1st June 2007, take the capital of their second pillar.

Metalising is a young man of employment age, and therefore won't be able to do so. Same happened to a young friend of our who left to go back to the UK recently.

Nothing to do with my age, I am too young for a Swiss pension, however very few EU countries require compulsory insurance.

The OP should follow my link, fill in the relevant form & send it to the Swiss government, they will do the rest.

Edit,
The young man leaving for the UK can get 100% 2nd pillar in cash. I was told by the insurance company its not possible, I just sent the form to the Swiss government & got a payout.

I can't believe that Portugal would require compulsory 2nd pillar insurance, Germany does not either

miniMia 22.01.2016 12:53

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Leaving again- didn't you you had come back Metalising. Good luck- again.

Mia the way I read it, it is the other way round. Fatmans is almost at retirement age, so he can take it

Yes! That is what i meant... I fixed it. Relying via phone late at night is dangerous. ;)



Quote:

Originally Posted by fatmanfilms (Post 2522692)
Nothing to do with my age, I am too young for a Swiss pension, however very few EU countries require compulsory insurance.

The OP should follow my link, fill in the relevant form & send it to the Swiss government, they will do the rest.

Edit,
The young man leaving for the UK can get 100% 2nd pillar in cash. I was told by the insurance company its not possible, I just sent the form to the Swiss government & got a payout.

I can't believe that Portugal would require compulsory 2nd pillar insurance, Germany does not either

It doesn't hurt to try!

Metallising 22.01.2016 19:40

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Odile, this time stayed only for a year. Again, I'm happy to leave! :)

Quote:

Originally Posted by fatmanfilms (Post 2522692)
Nothing to do with my age, I am too young for a Swiss pension, however very few EU countries require compulsory insurance.

The OP should follow my link, fill in the relevant form & send it to the Swiss government, they will do the rest.

Edit,
The young man leaving for the UK can get 100% 2nd pillar in cash. I was told by the insurance company its not possible, I just sent the form to the Swiss government & got a payout.

I can't believe that Portugal would require compulsory 2nd pillar insurance, Germany does not either

I was told by the insurance company once I leave the country my 2nd pillar will stay with them for 6 months and then, only 20% of the amount transferred to a "conte de libre passage " (Free passage account?..) from where I can take the money. Did you have to wait this period before sending the forms?

I have been reading in different websites people moving to EU can't take the funds, my (and yours) insurance company told me the same, after a call to "Fondation institution supplétive LPP" same thing as said.
In your case you just sent the forms and got the funds in full. I might have missed something, otherwise I would say you were lucky (!?)

fatmanfilms 23.01.2016 14:01

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Originally Posted by Metallising (Post 2523228)
Odile, this time stayed only for a year. Again, I'm happy to leave! :)



I was told by the insurance company once I leave the country my 2nd pillar will stay with them for 6 months and then, only 20% of the amount transferred to a "conte de libre passage " (Free passage account?..) from where I can take the money. Did you have to wait this period before sending the forms?

I have been reading in different websites people moving to EU can't take the funds, my (and yours) insurance company told me the same, after a call to "Fondation institution supplétive LPP" same thing as said.
In your case you just sent the forms and got the funds in full. I might have missed something, otherwise I would say you were lucky (!?)

Nothing to do with luck, I was also told by the pension companies that I could only take some of the money. I knew this was nonsense so filled in the form & posted it the Swiss Government in Bern.

Either listen to FUD, or fill in the form to get your money, its your choice
.

Metallising 23.01.2016 19:34

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Got it, thanks for sharing your experience.
One last question, did you send the forms immediately after leaving the country or did you have to wait a specific period before being able to reclaim the funds?
Waiting 2 months for the confirmation from LOB isn't a problem, as long as they pay :)

fatmanfilms 23.01.2016 21:47

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Originally Posted by Metallising (Post 2523566)
Got it, thanks for sharing your experience.
One last question, did you send the forms immediately after leaving the country or did you have to wait a specific period before being able to reclaim the funds?
Waiting 2 months for the confirmation from LOB isn't a problem, as long as they pay :)

I waited 6 months as several employers had not paid over the pension money, different countries have different waiting times, there is a specific form for Portugal, I don't remember the specific rules for Portugal but it will be very clear if you follow the link & read it yourself.

My payout was delayed as I was asked for a copy of my leaving certificate, I was away from home skiing so I did not provide this for over a month.

dbucar 14.04.2016 00:01

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Would anyone know the fees related to opening (and maintaining) a vested benefits (freizügiges Konto) at a bank?

fatmanfilms 14.04.2016 00:07

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Originally Posted by dbucar (Post 2573291)
Would anyone know the fees related to opening (and maintaining) a vested benefits (freizügiges Konto) at a bank?

Annual charge based of a percentage of the fund. Quite low with low performance to match :msnnerd:

Papa Goose 14.04.2016 08:30

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Under the new UK pension rules I can pull my UK personal pension pot as a lump sum now as I am passed my NRA, so no need for an annuity. I know the 1st 25% will tax free, that I will have a liability to tax on the remainder of the lump sum, and this is deducted before the insurance company remit the funds to me. However as I'm Swiss resident how does that impact on any tax HMRC will take?

Any info on this appreciated.

nasa2000 15.04.2016 09:46

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Originally Posted by fatmanfilms (Post 2400482)
If you leave Switzerland to live in the EU it's often possible to take your pension fund in full as many countries don't require compulsory insurance.

Further info from http://www.sfbvg.ch/xml_3/internet/E...on/d51/f62.cfm

I have today received my full Pillar 2 fund in CASH, I did not bother to move the fund to a lower tax canton as the saving was less than 2% of the capital & I thought it would take extra time & not worth the hassle.

Getting confirmation from the LOB fund took almost 2 months, payout within 1 week of receiving the signed paperwork from myself & proof of not marrying since leaving CH.

Thanks for sharing your experience.

One question, you say in FULL so there was no tax deduction? The reason I ask is because I contacted my pension fund few years ago to ask for the procedure, they told me I can get the money but after deduction of tax which if I recall correctly was about 7%. Though my case was moving to a non-EU country with no pension agreement with Switzerland.

Flumps 15.04.2016 11:01

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Hi there,
this is great information. I have received so many conflicting bits of information from people and pension companies. Looks like what you have said is definitive.

I think the problem is that with the UK not having a compulsory pension scheme, it confuses everyone else.

dbucar 15.04.2016 11:39

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Originally Posted by nasa2000 (Post 2574066)
Thanks for sharing your experience.

One question, you say in FULL so there was no tax deduction? The reason I ask is because I contacted my pension fund few years ago to ask for the procedure, they told me I can get the money but after deduction of tax which if I recall correctly was about 7%. Though my case was moving to a non-EU country with no pension agreement with Switzerland.

That must be the regular Quellensteuer then. This money was not taxed when deduced from your salary, so needs to be now whhen you liquidate it.
Cheers

fatmanfilms 15.04.2016 12:10

Re: Leaving to live in the EU & cashing in a Swiss Pension
 
Quote:

Originally Posted by Papa Goose (Post 2573336)
Under the new UK pension rules I can pull my UK personal pension pot as a lump sum now as I am passed my NRA, so no need for an annuity. I know the 1st 25% will tax free, that I will have a liability to tax on the remainder of the lump sum, and this is deducted before the insurance company remit the funds to me. However as I'm Swiss resident how does that impact on any tax HMRC will take?

Any info on this appreciated.

You will I believe have to pay UK tax, you get the personal allowance then the 20% band. Probably worth splitting over a few years if it's a big fund. Hargreaves Landsdown have a reasonably economic drawdown scheme.

I suspect you need to fill in a UK tax return to get the personal allowance, I am very interested in how this works as I will be doing this in 1 years time.
Quote:

Originally Posted by Flumps (Post 2574110)
Hi there,
this is great information. I have received so many conflicting bits of information from people and pension companies. Looks like what you have said is definitive.

I think the problem is that with the UK not having a compulsory pension scheme, it confuses everyone else.

I don't know any country other than Switzerland with compulsory insurance. I know people moving to France, Germany, Italy, UK & Malta who have taken cash before the earliest normal retirement of 60.


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