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Old 05.12.2018, 11:04
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2nd pillar contribution

Hello

I'm asking myself if it's wise to contribute to my 2nd pillar now.

It has been a good year for me in terms of earnings, so tax wise, it would make sense.
Unfortunately I lost my job (completely unfair reasons), but liquidity wise i should be ok. It is also a plus in my view in the sense that if i go find a job outside Switzerland, i can cash out my 2nd pillar: i'm not familiar with the conditions so that's why i'm asking if it makes sense.

1 argument against would be perhaps: the PF of my ex employer was relatively well funded, maybe i land a job in a place where the PF's assets are not good and i dont want a big exposure to that ?

it looks like I can contribute up to ~6 months salary roughly if i understand it correctly. Got a C permit.

Last edited by patrickk; 05.12.2018 at 11:29.
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Old 05.12.2018, 11:16
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Re: 2nd pillar contribution

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Unfortunately I lost my job (completely unfair reasons)
Don´t you have to be in a companies´ pension fund to stock up? Isn´t yours now in a "Freizügigkeitskonto" due to your having lost your job?

If so, I´d imagine you cannot stock up unless you are working
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Old 05.12.2018, 11:25
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Re: 2nd pillar contribution

Fair point, my notice period just began. Technically I'm employed until end of March
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Old 05.12.2018, 12:47
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Re: 2nd pillar contribution

i had checked about additional pillar 2 contribution with the tax office in Zurich (few years back). I was told that if pillar 2 is withdrawn before completion of 3 years of the additional contribution, the tax benefit would no longer apply.
Dont know if the rules have changed in the meantime
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Old 05.12.2018, 12:53
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Re: 2nd pillar contribution

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Fair point, my notice period just began. Technically I'm employed until end of March
Ask your pension fund, a friend/colleague of mine did that with Swiss Life. He paid in his redundancy money before his notice period ran out
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Old 05.12.2018, 13:41
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Re: 2nd pillar contribution

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Fair point, my notice period just began. Technically I'm employed until end of March
Then you can do it. Cashing it out when you leave was not as easy as 4 years ago especially if leaving for the UK
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Old 05.12.2018, 15:05
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Re: 2nd pillar contribution

Thank you all.

In case I withdraw my 2nd pillar immediately or before the 4 years (for leaving the country, buying property etc...), I just lose the tax advantage or the contributions, I am not paying any penalty right ?
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Old 05.12.2018, 15:08
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Re: 2nd pillar contribution

What country are you going to and will you work there? It is not always possible to take out all your pillar 2 money (have a search here, there are several threads on this topic)
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Old 05.12.2018, 15:55
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Re: 2nd pillar contribution

I have no idea! I hope to find a good job here.
I will do more research when I know more thanks!
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Old 05.12.2018, 16:08
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Re: 2nd pillar contribution

If you get a job here at a lower salary your possible 2nd pillar contributions will decrease as the amount is a calculation based on what you would have at your retirement age based on your expected salary.

from a pure tax standpoint you are better off buying into the 2nd pillar now. If you have a lump sum to contribute, it is also better to spread it across multiple fiscal years as the tax benefit is better
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Old 05.12.2018, 17:06
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Re: 2nd pillar contribution

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Fair point, my notice period just began. Technically I'm employed until end of March
Are you sure you're not talking about third pillar?
If so, I would say if I were a foreigner planning to leave I would not pay in now.

The second pillar is not your decision - what ever you get payed by the company, the part for the second pillar will be deducted.

And remember to organize the "Freizügigkeitskonto" after the last payment went in, that's your job.
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Old 05.12.2018, 17:10
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Re: 2nd pillar contribution

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Are you sure you're not talking about third pillar?
If so, I would say if I were a foreigner planning to leave I would not pay in now.

The second pillar is not your decision - what ever you get payed by the company, the part for the second pillar will be deducted.

And remember to organize the "Freizügigkeitskonto" after the last payment went in, that's your job.
If you have not been employed in Switzerland since you were 22 (I think) there is a gap in your 2nd pillar which you can buy in to. The exact value you can buy back is mentioned in your pension fund statement
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Old 05.12.2018, 17:19
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Re: 2nd pillar contribution

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If you have not been employed in Switzerland since you were 22 (I think) there is a gap in your 2nd pillar which you can buy in to. The exact value you can buy back is mentioned in your pension fund statement
OP wants out, not in.
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Old 05.12.2018, 17:22
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Re: 2nd pillar contribution

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OP wants out, not in.
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Hello

I'm asking myself if it's wise to contribute to my 2nd pillar now.

It has been a good year for me in terms of earnings, so tax wise, it would make sense.
My understanding is OP wants to buy into 2nd pillar now before losing the job as a tax benefit for the 2018 tax declaration.

Apologies for the confusion if I misunderstood
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Old 05.12.2018, 17:35
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Re: 2nd pillar contribution

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Fair point, my notice period just began. Technically I'm employed until end of March
If you decide to pay into 2nd pillar, pay half this year and the other half next year. Tax rate increases the higher your income (up to point) so you evade the top rate twice.

I think you should ask the tax bureau themselves as to whether this will be acepted by them if you were to leave, say, in May next year.
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Old 06.12.2018, 00:59
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Re: 2nd pillar contribution

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In case I withdraw my 2nd pillar immediately or before the 4 years (for leaving the country, buying property etc...), I just lose the tax advantage or the contributions, I am not paying any penalty right ?
If you withdraw before 3 years, Tax office will recalculate your tax assessment ignoring the contribution, so negating your tax saving and possibly increasing your tax rate slab.
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Old 06.12.2018, 01:08
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Re: 2nd pillar contribution

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My understanding is OP wants to buy into 2nd pillar now before losing the job as a tax benefit for the 2018 tax declaration.

Apologies for the confusion if I misunderstood
Well, if he has a job now he - by law - is in. And as I mentioned can't decide whether or not to pay in this year as it is deducted monthly.

You're right, the question is totally confusing (which is why I assumed OP means 3rd pillar really).
So let's all apologize, sit back with a drink .... or two .... or three ..... until we know what the subject actrually is.

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Old 06.12.2018, 01:50
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Re: 2nd pillar contribution

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Well, if he has a job now he - by law - is in. And as I mentioned can't decide whether or not to pay in this year as it is deducted monthly.

You're right, the question is totally confusing (which is why I assumed OP means 3rd pillar really).
Actually, in 2nd Pillar, on top of mandatory contribution per month, you can do additional voluntarily contributions which are tax deductible (if you are below a benchmark amount in accumulated pension assets, as happens for new arrivals to CH who did not contribute earlier). Been there, done that.
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Old 06.12.2018, 09:29
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Re: 2nd pillar contribution

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Actually, in 2nd Pillar, on top of mandatory contribution per month, you can do additional voluntarily contributions which are tax deductible (if you are below a benchmark amount in accumulated pension assets, as happens for new arrivals to CH who did not contribute earlier). Been there, done that.
this was my point - thanks for articulating it very well
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Old 13.12.2018, 16:11
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Re: 2nd pillar contribution

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My understanding is OP wants to buy into 2nd pillar now before losing the job as a tax benefit for the 2018 tax declaration.

Apologies for the confusion if I misunderstood
exactly.

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Actually, in 2nd Pillar, on top of mandatory contribution per month, you can do additional voluntarily contributions which are tax deductible (if you are below a benchmark amount in accumulated pension assets, as happens for new arrivals to CH who did not contribute earlier). Been there, done that.
yes. I have done that too in the past and wanted to do it again this year as I'm changing job and might end up abroad.
If I go abroad, am I still subject to a 3 year vesting to keep the tax benefits ? (it might depend on the destination i guess ?)
If yes, can I keep my 2nd pillar, and claim the money in 3 years at preferred terms ?
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