Go Back   English Forum Switzerland > Help & tips > Insurance  
Reply
 
Thread Tools Display Modes
  #21  
Old 28.04.2020, 09:20
Capitan Harlock's Avatar
Member
 
Join Date: Nov 2018
Location: Geneva
Posts: 109
Groaned at 0 Times in 0 Posts
Thanked 77 Times in 42 Posts
Capitan Harlock is considered knowledgeableCapitan Harlock is considered knowledgeableCapitan Harlock is considered knowledgeable
Re: withdraw - 2nd pillar

Quote:
View Post
There are good reasons why you shouldn’t take out a lump sum early - CHF 1’000’000 might look like a lot on your pensionskasse account, but spread it over the years until you die (unknown), and it spreads quite thinly if you don’t have substantial other savings to back you up.
Regarding this I have this idea but I don't know how feasible is (I'm still 30 years from retirement so it's all very hypothetical).

From what I understood if you move to another EU country you will get a pension that is equal to what you will get in CH from the 1st pillar. The 1st pillar is pocket money here but is a decent pension in many EU countries (like Italy, Spain or Portugal) as it's around 1000 EUR.

So if you cash your 1 million CHF and invest it (whether is in funds, buying real estate to rent, etc), you can live off your 1st pillar pension in a cheap EU Mediterranean country and have enough money in the bank to cover any emergency you might face in your old age.

Am I wrong?
Reply With Quote
  #22  
Old 28.04.2020, 09:50
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 12,783
Groaned at 99 Times in 88 Posts
Thanked 19,576 Times in 8,681 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: withdraw - 2nd pillar

Quote:
View Post
I wanted to know if there is anything preventing me from taking the non mandatory part as soon as I leave and then the mandatory part once confirmed with the LOB after the 3 month waiting period? or must this be done in one withdraw? its also good for tax reasons...
Tax wise it depends if those two transactions are made in the same year or different year. If they are made in the same year they should be taxed as if it was a single transaction. You might cheat and do illegal tax evasion by performing the transaction in different cantons and institutes.

Even if there is no tax benefit it make sense to get the non-mandatory part ASAP and invest it in a better performing vehicle then the libre passage/Freizügigkeitskonto.

Anyway, worth to remember that even the number of regular pillar 2 payouts just right before pension age are limited. Some cantons allow two, some others three.

See here, which also has a nice table how much much each cantons tax pillar2/3 withdrawals.
https://www.nzz.ch/finanzen/privat-f...ten-ld.1381394

Quote:
View Post
So if you cash your 1 million CHF and invest it (whether is in funds, buying real estate to rent, etc), you can live off your 1st pillar pension in a cheap EU Mediterranean country and have enough money in the bank to cover any emergency you might face in your old age.

Am I wrong?
It depends mainly on these parts: If you can invest the withdrawn money with a better return than what the pension fund is offering as a monthly pension. (Be aware about the two conversion rates for mandatory and non mandatory part).
How long you think you will survive before you push the daisies.
If you intend to inherit some of the money to your relatives or other beneficiaries.

A middle ground is to take the mandatory part as a fixed monthly pension and the non-mandatory part as a lump sum.
__________________
On Hiatus- Normal operation will resume 22.02.2022 22:02:20.22
Reply With Quote
  #23  
Old 21.06.2020, 17:03
Newbie
 
Join Date: Jun 2020
Location: lausanne
Posts: 1
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
lausanneliving has no particular reputation at present
Re: withdraw - 2nd pillar

Anyone has an update and answer to this question? i am also interested to know.

Question: if one were to buyback years in his/her 2nd pillar, and leave the country for a Non-EU country in 1-3 years, are there any penalties?

Thank you in adv.

Quote:
View Post
Hey folks, here is a technical one for the experts and the experienced:



Does anyone know if the 3-year lock-in rule after making voluntary additional buy-ins (i.e. to fill missing years / gaps in 2nd pillar in order to benefit from a one-time tax saving) apply for cashing out on grounds of self-employment in Switzerland and/or departing Switzerland permanently? If no hard lock-in applies, are there any requirements to pay back the tax savings achieved previously?



I know such a 3-year hard lock-in period applies to withdrawals for purposes of buying a self-occupied property in Switzerland. But not sure it applies to other qualifying reasons for cashing out.



Thanks in advance for any contribution!
Reply With Quote
Reply




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
Withdraw 2nd Pillar buy property abroad while leaving Switzerland Guest Finance/banking/taxation 8 12.03.2019 13:01
C permit on hold - can't withdraw pillar 2? ivank Leaving Switzerland 2 04.11.2018 11:46
Tax on withdraw from 3rd pillar for buying property sassanomi Finance/banking/taxation 7 30.09.2018 22:17
Withdraw from 2nd pillar when buying apartment? sassanomi Finance/banking/taxation 1 07.01.2018 07:48
Third pillar and Withdraw Guest Finance/banking/taxation 9 07.05.2015 14:56


All times are GMT +2. The time now is 23:03.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0