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Old 05.01.2019, 11:36
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Getting to my pension money

I've recently finished working in Switzerland, left the country and moved to the UK.

Whilst there I had to pay into a company insurance policy. I've been told I must now transfer this to a pension account unconnected to the company- however that half of this money I'm able to get directly transferred to my personal account? (mandatory and non mandatory part? Though all was mandatory I had thought...)

Has anyone any experience of doing this sort of thing before?

The letter I received said if they get no reply they'll transfer it to some account that has a fee. I'm guessing this is purposefully a not very good account. However, are there any alternatives out there that won't lose me money and will allow my pension money to be fully available to me should I live that long?

I have absolutely zero clue on pension stuff. I'm only 30 and aren't optimistic about my survival prospects. I had hoped I could take all the money to fund buying a house but it seems at least I can get half of it, I just have to avoid losing the half I can't get.
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Old 05.01.2019, 12:37
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Re: Getting to my pension money

you can probably get most of it!

ef thread

service
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  #3  
Old 05.01.2019, 17:43
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Re: Getting to my pension money

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you can probably get most of it!

ef thread

service
Oh. Thats very interesting.
So I can get it into my ch account with no taxes?
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Old 05.01.2019, 18:21
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Re: Getting to my pension money

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I've recently finished working in Switzerland, left the country and moved to the UK.

Whilst there I had to pay into a company insurance policy. I've been told I must now transfer this to a pension account unconnected to the company- however that half of this money I'm able to get directly transferred to my personal account? (mandatory and non mandatory part? Though all was mandatory I had thought...)

Has anyone any experience of doing this sort of thing before?

The letter I received said if they get no reply they'll transfer it to some account that has a fee. I'm guessing this is purposefully a not very good account. However, are there any alternatives out there that won't lose me money and will allow my pension money to be fully available to me should I live that long?

I have absolutely zero clue on pension stuff. I'm only 30 and aren't optimistic about my survival prospects. I had hoped I could take all the money to fund buying a house but it seems at least I can get half of it, I just have to avoid losing the half I can't get.
Your Pillar 2 contributions may have both mandatory and extra mandatory portions. This might help explain it better. To the extent that there is an extra-mandatory portion, this can/will be paid out. The mandatory portion can be withdrawn in certain cases but if you can't withdraw it then it stays in Switzerland in a vested benefits account.

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Oh. Thats very interesting.
So I can get it into my ch account with no taxes?
Not quite. The extra-mandatory portion will be tax free from a Swiss income tax perspective but there will be 1) a withholding tax based on the canton your pension provider that you withdraw from is based (you can do some planning - read up on transfers); and 2) as you are now a UK tax resident, the income is likely to be taxable in the UK!
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Old 13.03.2019, 19:56
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Re: Getting to my pension money

OK.
So it is confirmed; I may be able to get all my money, whether as a full pension payment via the above or on account of my buying a house in the UK, but I must open a vested benefits account as an intermediary. I can't do it directly from my old employer.

Anyone know about these...are they hard to get? Are they all much of a muchness or some better than others?
In particular I want to avoid one I must pay for.
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Old 13.03.2019, 20:51
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Re: Getting to my pension money

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2) as you are now a UK tax resident, the income is likely to be taxable in the UK!
That's not true.

Switzerland: double taxation agreement, Article 18: Pensions
(2) Notwithstanding the provisions of paragraph (1), a lump sum payment derived from a pension scheme established in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in the first-mentioned State.
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Old 13.03.2019, 23:39
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Re: Getting to my pension money

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OK.
vested benefits account as an intermediary

Anyone know about these...are they hard to get? Are they all much of a muchness or some better than others?
In particular I want to avoid one I must pay for.
nothing special about these. all the big providers offer them at least. the interest rates are equally terrible in all of them. in your case as this is an necessary intermediary account, i would go with the one with the lowest fees to open AND especially to close! get that confirmed in advance. also some of the cantonal banks might offer good deals too. nothing is free, there will always be fees.

fatmanfilms will probably be along shortly to suggest Pictet GE, if i remember correctly! (c;

you mentioned old employer. where is the money sitting now? usually if YOU do not move it, within 1 to 3 months usually (6 max) they move it out to a vested account of their choice! But you still own the content and have to claim it.

Last edited by bill_door; 13.03.2019 at 23:45. Reason: re-read the question!
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Old 13.03.2019, 23:57
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Re: Getting to my pension money

Mine was transferred to a vested benefits account. I could take the non mandatory part (about half) but not the rest until I'm old and can't enjoy it.

Warning in advance. There was a lot of paper work!

I was hoping for a no deal brexit so I could take the rest!
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Old 14.03.2019, 22:21
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Re: Getting to my pension money

Quote:
Mine was transferred to a vested benefits account. I could take the non mandatory part (about half) but not the rest until I'm old and can't enjoy it.

Warning in advance. There was a lot of paper work!

I was hoping for a no deal brexit so I could take the rest!
Would have been a slight up side to the end of the country wouldn't it
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nothing special about these. all the big providers offer them at least. the interest rates are equally terrible in all of them. in your case as this is an necessary intermediary account, i would go with the one with the lowest fees to open AND especially to close! get that confirmed in advance. also some of the cantonal banks might offer good deals too. nothing is free, there will always be fees.

fatmanfilms will probably be along shortly to suggest Pictet GE, if i remember correctly! (c;

you mentioned old employer. where is the money sitting now? usually if YOU do not move it, within 1 to 3 months usually (6 max) they move it out to a vested account of their choice! But you still own the content and have to claim it.
Yep, they said they'd do this and move it to an account which charges yearly fees if I don't get back to them.
Since I'm in contact with them they haven't done this yet.
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Old 15.03.2019, 10:42
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Re: Getting to my pension money

We are moving internationally as well. It’s best to open an account in Schwyz as they have the lowest tax (4%) rate. Then from there you transfer it to your bank.
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Old 15.03.2019, 12:10
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Re: Getting to my pension money

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We are moving internationally as well. Itís best to open an account in Schwyz as they have the lowest tax (4%) rate. Then from there you transfer it to your bank.
You can do this without going there?
If I have to go in person not sure the costs would be worth it
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Old 15.03.2019, 13:33
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Re: Getting to my pension money

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You can do this without going there?
If I have to go in person not sure the costs would be worth it
You may be able to do it online. My husband is going there next week to open one and Iíll have him ask.
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Old 15.03.2019, 17:30
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Re: Getting to my pension money

https://www.independent-foundation.ch/en/index.php
This is the company that we are using in Schwyz. My husband said it can all be done over the phone and online. You would need to send over notarized documents, copy of passport, etc. He didn’t think they would do it for under 100,000.
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Old 17.03.2019, 19:37
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Re: Getting to my pension money

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https://www.independent-foundation.ch/en/index.php
This is the company that we are using in Schwyz. My husband said it can all be done over the phone and online. You would need to send over notarized documents, copy of passport, etc. He didnít think they would do it for under 100,000.
Yeah, I'm way under that. But thanks anyway.
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Old 17.03.2019, 21:48
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Re: Getting to my pension money

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That's not true.

Switzerland: double taxation agreement, Article 18: Pensions
(2) Notwithstanding the provisions of paragraph (1), a lump sum payment derived from a pension scheme established in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in the first-mentioned State.
Unless the pension falls under UK definition of disguised remuneration, UK has got very hot on tax avoidance recently. In most cases it won't.
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Old 18.03.2019, 20:42
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Re: Getting to my pension money

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You can do this without going there?
If I have to go in person not sure the costs would be worth it

I opened one in Schwyz without going there...


(Well, actually, I have been there, but not for that!).


All done by post/online/via insurance agency.


Regards




Ian
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