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Old 28.01.2019, 11:38
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Re: Swiss pensions consolidated summary

So I just got the brand new insurance certificate by post (pension). A few things I still don't understand.

Termination benefit is the amount paid in over the years: assets from surpluses is the interest the pension fund is paying me? That is less than 1%!!

Calculation basis says that interest for the "supplementary" part is 0,25%. How much does this vary between insurance company and years? What sort of interest do other people get?

If I was to leave Switzerland now, or anytime before reaching retirement age, and I didn't want to withdraw my 2nd pillar money, what happens to it? The pension fund continues to pay 0.x% interest?

Thanks
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  #362  
Old 28.01.2019, 13:06
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Re: Swiss pensions consolidated summary

Assets from surpluses might be an extra interest payment because the pension fund has surpluses. For example my pension fund paid an extra 0.5%.

For historical interest comparison:
http://www.pensionskassenvergleich.c...sung/index.php
or of a particular pension fund:
https://www.pkzh.ch/pkzh/de/index/za...sungssatz.html

Interest on the supplementary part is at the moment at a historical low. For the mandatory part as well, but this is at least fixed at 1%-


If you leave the company and do not join another Swiss company you can park the money in a 2nd pillar Freizügigkeitskonto/libre passage/vested benefit account. Some banks, insurances, and approved finacial adivors can offer fund based products. Additionally, you might withdraw all or part of the money if you leave the country.
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  #363  
Old 28.01.2019, 13:34
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Re: Swiss pensions consolidated summary

Thank you the reply and links.

The text behind the link explains well what is happening: apparently my insurance premiums and the returns are used to fund "excessive conversion rates", i.e. existing commitments. So not even very good market returns will make my statement look any better going forward.

This answers also my second question, whether or not it makes sense to leave money into the 2nd pillar and not withdraw in case of leaving the county.
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Old 28.01.2019, 14:17
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Re: Swiss pensions consolidated summary

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This answers also my second question, whether or not it makes sense to leave money into the 2nd pillar and not withdraw in case of leaving the county.
That answer is not related to your question. The problem of excessive conversion rate is only a problem if your money is part of a pension fund. As soon as you are no longer employed by a Swiss employee it is no longer part of a pension fund and your pillar 2 money becomes independent. Here an overview of what could be possible: https://www.liberty.ch/en/vested-ben...iberty-invest/

Still a question if it makes sense or if an alternative investment might be have better performance after any tax applicable.
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  #365  
Old 28.01.2019, 16:22
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Re: Swiss pensions consolidated summary

Thanks for another good link, lots of useful information there.
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  #366  
Old 28.01.2019, 20:14
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Re: Swiss pensions consolidated summary

FWIW in 2018 mine paid 1% on accumulated mandatory contributions and 0.25% on accumulated extra-mandatory contributions.
15% or so of contributions go on "insurance".
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Old 30.01.2019, 09:45
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Re: Swiss pensions consolidated summary

Hi there,


As a self employed EU Citizen working in CH since 7 years now, I pay (compulsory) the following yearly.


AHV/IV/EO 3500 CHF

FAK 750.


What do I get for these payments in the future?

Is this money lost and gone forever?


I make the 7 K approx payment into the 3A Sauele through my Bank.

I dont plan on being in CH at retirement age.


Thank you for any advice on this.
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Old 30.01.2019, 09:54
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Re: Swiss pensions consolidated summary

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Is this money lost and gone forever?
Probably.

Tom
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  #369  
Old 30.01.2019, 10:47
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Re: Swiss pensions consolidated summary

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What do I get for these payments in the future?

Is this money lost and gone forever?
FAK
Get a child.

EO.
Become pregnant and give birth to a child, or join the Swiss Army/alternative service or Civil Protection.

IV
Become disabled.

AHV
For the "A" part of AHV: Become 65 years old (give or take) and apply for an old age pension
https://www.ahv-iv.ch/en/Leaflets-fo...plication-form

For "H" part of AHV: get married or get a child and than die.
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