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Old 07.08.2020, 16:25
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2nd pillar, moving to UK/house purchase

I've really tried to follow other threads, but I'm still confused over the ability to cash out my 2nd pillar pension on departure from Switzerland. I would really appreciate any advice.

I left Switzerland and have just been offered, but not yet started, a new job in the UK, where I am a national- I will start my new job soon and I am planning to sign up to their pension (unless doing so will limit my swiss pension pay out?).

Based on my understanding from this forum, it does not seem like I can take out ALL of my 2nd pillar pension, just the non mandatory parts. I can attempt to send off a form to the LOB fund though to see if they let me as others have had success previously (http://www.sfbvg.ch/xml_3/internet/E...on/d51/f62.cfm).

However, in around 1 years time, I am planning on buying my first house in the UK- am I able to extract the whole (mandatory and non mandatory) 2nd pillar for this? If so, is it work just leaving all of my 2nd pillar in a swiss vested benefits account until I plan on buying.

Apologies if these questions have already been answered, Switzerland was my first job so I am just figuring out taxes/pensions etc let alone how they work in between 2 different countries. Thank you for any advice in advance!
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  #2  
Old 07.08.2020, 16:34
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Re: 2nd pillar, moving to UK/house purchase

And to add to this- will Brexit have any other implication on this? Although the UK is not an EU member it still seems I can't cash out my 2nd pillar?
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Old 08.08.2020, 11:26
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Re: 2nd pillar, moving to UK/house purchase

From what I understood and am planning to do (in Denmark) this is indeed possible.

See here (in French/German/Italian).

Not sure with Brexit to be honest since that page specifically mentions European Union.

And not sure if the same rules as in Switzerland (maximum 50% of the "cash" portion that you have to bring to the Bank apply, i.e. maximum 50% of whatever amount you have to pay in advance can come from 2nd pillar and at least 50% has to come from savings/cash/bank account). Maybe this last part is a Swiss requirement only.

Hope it helps.
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Old 09.08.2020, 20:16
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Re: 2nd pillar, moving to UK/house purchase

With regard to Brexit (and assuming you arrived here before 31 January 2020) I believe you are treated with protected rights, as if you are an EU citizen. Which means you probably can't get your pension out until you retire.

Regarding using the second pillar to fund the purchase of a place in the UK, I would expect any pension amounts to be taxable in the UK, unless you've reached 55/ normal retirement date. If you have, you may have problems getting a mortgage, in any case.

Happy to accept I'm wrong, this is based on my understanding atm.
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Old 09.08.2020, 20:34
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Re: 2nd pillar, moving to UK/house purchase

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With regard to Brexit (and assuming you arrived here before 31 January 2020) I believe you are treated with protected rights, as if you are an EU citizen. Which means you probably can't get your pension out until you retire.

Regarding using the second pillar to fund the purchase of a place in the UK, I would expect any pension amounts to be taxable in the UK, unless you've reached 55/ normal retirement date. If you have, you may have problems getting a mortgage, in any case.

Happy to accept I'm wrong, this is based on my understanding atm.
You are wrong on at least one count. You will still get protected rights if you arrive now (and will until the end of the transition period).
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Old 18.04.2021, 16:54
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Re: 2nd pillar, moving to UK/house purchase

Hi greengage, hope your move back to UK went smoothly.

Did you manage to get any clarity on the below?

I'm in the exact same situation myself right now and wondering whether it makes more sense to transfer all into a vested benefits account or take all what I can to UK ASAP. And also wondering if I put all into a VB account, if all of it can then be used for a UK house purchase.

Any advice from your recent experience would be much appreciated!

Thanks a lot.

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I've really tried to follow other threads, but I'm still confused over the ability to cash out my 2nd pillar pension on departure from Switzerland. I would really appreciate any advice.

I left Switzerland and have just been offered, but not yet started, a new job in the UK, where I am a national- I will start my new job soon and I am planning to sign up to their pension (unless doing so will limit my swiss pension pay out?).

Based on my understanding from this forum, it does not seem like I can take out ALL of my 2nd pillar pension, just the non mandatory parts. I can attempt to send off a form to the LOB fund though to see if they let me as others have had success previously (http://www.sfbvg.ch/xml_3/internet/E...on/d51/f62.cfm).

However, in around 1 years time, I am planning on buying my first house in the UK- am I able to extract the whole (mandatory and non mandatory) 2nd pillar for this? If so, is it work just leaving all of my 2nd pillar in a swiss vested benefits account until I plan on buying.

Apologies if these questions have already been answered, Switzerland was my first job so I am just figuring out taxes/pensions etc let alone how they work in between 2 different countries. Thank you for any advice in advance!
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  #7  
Old 02.05.2021, 10:25
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Re: 2nd pillar, moving to UK/house purchase

I spoke with liberty pensions in schwyz about this - They were clear that you can take the whole pillar 2 and use it to pay a mortgage in the UK but oinly if you have not made any contributions for three years.

If anyone knows different I would also like to hear.
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  #8  
Old 02.05.2021, 12:27
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Re: 2nd pillar, moving to UK/house purchase

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I spoke with liberty pensions in schwyz about this - They were clear that you can take the whole pillar 2 and use it to pay a mortgage in the UK but oinly if you have not made any contributions for three years.

If anyone knows different I would also like to hear.
Isn't it any additional contributions? In which case those additional contributions would not be withdrawable but the remainder would.

That'd be the situation for paying for a property in Switzerland.

I think if you move to the uk you can take everything with no limitations since Brexit?
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Old 02.05.2021, 13:00
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Re: 2nd pillar, moving to UK/house purchase

I believe it's not entirely accurate.

You may take whole amount however Tax office may want to tax your extra contributions differently and add it retrospectively to your salary for tax purposes and not be taxed as 2nd Pillar would be .

it be similar to anyone that purchases hause in CH with 2a early withdraw where whenever you paid-in extra in lsat 3-years - during withdraw would make tax office to check back for "tax deductions in last 4-years" - and make sure you see the 'right' bill
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