Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #361  
Old 28.01.2019, 12:38
Newbie
 
Join Date: Jan 2019
Location: ZH
Posts: 8
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
Norman has no particular reputation at present
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
Reply With Quote
  #362  
Old 28.01.2019, 14:06
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 12,065
Groaned at 91 Times in 82 Posts
Thanked 18,370 Times in 8,170 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
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.
__________________
"Okay, I just hope we don't wake up on Mars or something surrounded by millions of little squashy guys."
Reply With Quote
This user would like to thank aSwissInTheUS for this useful post:
  #363  
Old 28.01.2019, 14:34
Newbie
 
Join Date: Jan 2019
Location: ZH
Posts: 8
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
Norman has no particular reputation at present
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.
Reply With Quote
  #364  
Old 28.01.2019, 15:17
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 12,065
Groaned at 91 Times in 82 Posts
Thanked 18,370 Times in 8,170 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Swiss pensions consolidated summary

Quote:
View Post
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.
Reply With Quote
This user would like to thank aSwissInTheUS for this useful post:
  #365  
Old 28.01.2019, 17:22
Newbie
 
Join Date: Jan 2019
Location: ZH
Posts: 8
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
Norman has no particular reputation at present
Re: Swiss pensions consolidated summary

Thanks for another good link, lots of useful information there.
Reply With Quote
  #366  
Old 28.01.2019, 21:14
Forum Veteran
 
Join Date: Aug 2015
Location: Basel
Posts: 1,721
Groaned at 38 Times in 30 Posts
Thanked 1,011 Times in 605 Posts
Landers has an excellent reputationLanders has an excellent reputationLanders has an excellent reputationLanders has an excellent reputation
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".
Reply With Quote
  #367  
Old 30.01.2019, 10:45
Newbie
 
Join Date: Jan 2016
Location: Herisau
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
mejustme has no particular reputation at present
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.
Reply With Quote
  #368  
Old 30.01.2019, 10:54
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 29,010
Groaned at 1,992 Times in 1,508 Posts
Thanked 34,458 Times in 16,390 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Swiss pensions consolidated summary

Quote:
View Post
Is this money lost and gone forever?
Probably.

Tom
Reply With Quote
This user would like to thank st2lemans for this useful post:
  #369  
Old 30.01.2019, 11:47
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 12,065
Groaned at 91 Times in 82 Posts
Thanked 18,370 Times in 8,170 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Swiss pensions consolidated summary

Quote:
View Post
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.
Reply With Quote
The following 2 users would like to thank aSwissInTheUS for this useful post:
  #370  
Old 26.06.2019, 17:18
Junior Member
 
Join Date: Sep 2014
Location: Zug
Posts: 70
Groaned at 3 Times in 3 Posts
Thanked 9 Times in 8 Posts
Rosso has no particular reputation at present
Re: Swiss pensions consolidated summary

Hi all. I was informed by the pension fund, that they can allocate my second pillar amount (leaving for a non-EU country) only to one of Swiss banks. Then I have to transfer the amount from the Swiss bank account to my local bank account myself.

At the same time, I have to close my Swiss bank account here when leaving the country permanently.

The issue is that duration of my residence permit B is limited by the project where I work. So prior to the contract expiration date, I have to close my bank account and inform pension fund that I'm leaving. What happens, if transfer of money from the pension fund to the bank account would not take place before my bank account is closed?

Thanks for advice.
Reply With Quote
  #371  
Old 08.12.2019, 22:30
Newbie 1st class
 
Join Date: Jun 2019
Location: Zurich
Posts: 10
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 2 Posts
Rumcajs has earned some respectRumcajs has earned some respect
Re: Swiss pensions consolidated summary

Quote:
View Post
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?

Thank you for any advice on this.
Yes, technically speaking. Though with AHV, you do get a promise by the Swiss government that you will receive a (not very large) sum every month every month after you retire. But it is a promise, it will not be coming from your own funds.
Reply With Quote
  #372  
Old 08.12.2019, 22:32
Newbie 1st class
 
Join Date: Jun 2019
Location: Zurich
Posts: 10
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 2 Posts
Rumcajs has earned some respectRumcajs has earned some respect
Re: Swiss pensions consolidated summary

Quote:
View Post
Hi there,


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.
3A is not lost and gone forever, and if you leave CH, you will receive the balance at the time adjusted for taxes.

Well done for maxing out your annual contribution by the way.
Reply With Quote
  #373  
Old 20.05.2020, 12:04
Newbie
 
Join Date: Mar 2019
Location: Kerzers
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
DanGeo has no particular reputation at present
Re: Swiss pensions consolidated summary

Hi all,

I've recently left Switzerland permanently and want to withdraw my pension. I was speaking to one agency who said they cannot work with foreign registered people.

Can anyone suggest a group that can help get my pension contributions (direct at source) out of CH?

Cheers!
Reply With Quote
  #374  
Old 04.06.2020, 12:34
Newbie
 
Join Date: Mar 2019
Location: Kerzers
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
DanGeo has no particular reputation at present
Re: Swiss pensions consolidated summary

No one?
Reply With Quote
  #375  
Old 04.06.2020, 13:03
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 18,743
Groaned at 356 Times in 285 Posts
Thanked 18,447 Times in 9,957 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Swiss pensions consolidated summary

Quote:
View Post
No one?
I was hoping you would use the search function as it's been asked many times.

This thread of mine may help. https://www.englishforum.ch/finance-...s-pension.html
Reply With Quote
  #376  
Old 09.06.2020, 13:15
Newbie
 
Join Date: Mar 2019
Location: Kerzers
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
DanGeo has no particular reputation at present
Re: Swiss pensions consolidated summary

Quote:
View Post
I was hoping you would use the search function as it's been asked many times.

This thread of mine may help. https://www.englishforum.ch/finance-...s-pension.html
Hi, and thanks for the response. I searched to no avail, and the linked thread has not helped answer my question. Rather than read through thouands of pages I made the judgement that posting a question in a helpful community may get an answer faster.

I may be wrong, as I often am, but the LOB are not tax/pension/financial support company, though I understand I might have to fill in some of their forms at some point.

In short, I have no idea what I'm doing. I know I can withdraw my contributions, but have no idea how to do it. Your thread assumes a lot of specific knowledge. I am looking for recomendations on a financial advisor in Switzerland (Canton Fribourg) who can walk me through this at low cost. I was given a reccomendation by a friend, however that company says that they cannot advise someone resident abroad.
Reply With Quote
  #377  
Old 09.06.2020, 13:21
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 18,743
Groaned at 356 Times in 285 Posts
Thanked 18,447 Times in 9,957 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Swiss pensions consolidated summary

Quote:
View Post
Hi, and thanks for the response. I searched to no avail, and the linked thread has not helped answer my question. Rather than read through thouands of pages I made the judgement that posting a question in a helpful community may get an answer faster.

I may be wrong, as I often am, but the LOB are not tax/pension/financial support company, though I understand I might have to fill in some of their forms at some point.

In short, I have no idea what I'm doing. I know I can withdraw my contributions, but have no idea how to do it. Your thread assumes a lot of specific knowledge. I am looking for recomendations on a financial advisor in Switzerland (Canton Fribourg) who can walk me through this at low cost. I was given a reccomendation by a friend, however that company says that they cannot advise someone resident abroad.
You need permission from the LOB, if you get permission they will instruct your pension provider to release the money to you, they will deduct withholding tax. You don't need a tax / pension / support company for any part of the process.
Reply With Quote
  #378  
Old 09.06.2020, 13:30
Newbie
 
Join Date: Mar 2019
Location: Kerzers
Posts: 6
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
DanGeo has no particular reputation at present
Re: Swiss pensions consolidated summary

Ok, thank you!

So literally all I have to do is fill out this form to ask permission from the LOB, then I just wait and they'll deposit the funds into my account?

Is there a Fribourg office, where I was living, or is this group based in Bern only as the capital? Search brought up nothing. fr.ch I dont find too helpful.
Reply With Quote
  #379  
Old 09.06.2020, 14:35
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 18,743
Groaned at 356 Times in 285 Posts
Thanked 18,447 Times in 9,957 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Swiss pensions consolidated summary

Quote:
View Post
Ok, thank you!

So literally all I have to do is fill out this form to ask permission from the LOB, then I just wait and they'll deposit the funds into my account?

Is there a Fribourg office, where I was living, or is this group based in Bern only as the capital? Search brought up nothing. fr.ch I dont find too helpful.
Yes

It's a Government dept in Bern, they will make enquiries to see if you are subject to compulsory insurance or not. This depends on the answer they receive from HMRC, based on your employment status.
Reply With Quote
Reply

Tags
avs, bvg, contributions, leaving switzerland, lpp, pillars, sticky thread, swiss pension, tax saving, vested benefits




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Summary of Cycling Events in Zurich dakman Sports / Fitness / Beauty / Wellness 22 23.03.2016 13:20
Swiss & UK pensions - confused & need help Flower Finance/banking/taxation 10 28.01.2015 09:34
What pensions become GVAbound Finance/banking/taxation 6 07.12.2008 00:23
Consolidated "Unicef/Craig" thread craig_nelson Employment 23 19.04.2007 15:36
Email summary of postings Diem Forum support 0 24.12.2005 09:14


All times are GMT +2. The time now is 19:58.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0