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-   -   Pension Confusion (https://www.englishforum.ch/leaving-switzerland/299856-pension-confusion.html)

Waterloo 27.08.2020 08:23

Pension Confusion
 
Hello everyone,
I am so confused and really struggling to make sense of my pension situation. Please bear with me as I explain as I am having sleepless nights trying to figure out who to speak to and how to go about sorting this all out.
My situation in a nutshell:
I am on a German Passport
I arrived in Switzerland to work at the start of 2012
I left to go back home (South Africa) end of 2014
I was paid out a cash amount as I was not going to an EU country
I was then offered another job in Switzerland near the end of 2015 and returned.
I have been working here ever since.
I am not sure how long I will still be here, BUT
If I leave in the next year or so to the UK where my family is now based, can I
1 - cash in pension again
2 - continue contributing
3 - "freeze it" and then claim
4 - how much would it be
etc etc etc
Who should I talk to in order to get a clear understanding on how this all works as the folks at work all seem as confused as I am
Thank you all for you patience
:):):)

Meerkat33 27.08.2020 13:01

Re: Pension Confusion
 
1 - no as I think they subscribed/will subscribe an agreement equivalent to the one with EU/AELS, if a lesser agreement is established instead you will not be able to cash out first pillar but perhaps the second (like if you went to serbia say). To south africa you could do both pillars as I understand.
2 - generally not, you pay where you work and live assuming you will do both in the UK
3 - you will get it when you retire, just as a normal pension
4 - I think you can request a forecast, I don't know to which level of detail though
You can find a lot of info on federal websites, just takes some time to read through and learn everything.

Missmoneypenny 27.08.2020 13:51

Re: Pension Confusion
 
Quote:

Originally Posted by Waterloo (Post 3211288)
Hello everyone,
I am so confused and really struggling to make sense of my pension situation. Please bear with me as I explain as I am having sleepless nights trying to figure out who to speak to and how to go about sorting this all out.
My situation in a nutshell:
I am on a German Passport
I arrived in Switzerland to work at the start of 2012
I left to go back home (South Africa) end of 2014
I was paid out a cash amount as I was not going to an EU country
I was then offered another job in Switzerland near the end of 2015 and returned.
I have been working here ever since.
I am not sure how long I will still be here, BUT
If I leave in the next year or so to the UK where my family is now based, can I
1 - cash in pension again
2 - continue contributing
3 - "freeze it" and then claim
4 - how much would it be
etc etc etc
Who should I talk to in order to get a clear understanding on how this all works as the folks at work all seem as confused as I am
Thank you all for you patience
:):):)

When it comes to pensions and getting the best deal or option when leaving Switzerland etc. I suggest go talk with FORTH CAPITAL, they deal exclusively with Expats for pensions and Investments.
They are based in Geneva and I am not sure if they would give free advice but I imagine it would be cost effective and ensure would not cause any possible tax issues later.

My personal experience was some small pensions I had in UK I transferred to here but I lost a little in currency conversion.
Sometimes may be better to freeze the one here, rather than transfer the value or contributions.
Depending on which Pillar, cash payout may not be allowed.

aSwissInTheUS 27.08.2020 13:56

Re: Pension Confusion
 
We have to look ate the different pillars.

Pillar 3b is the most simple. It covers any thing not covered in any of the otherr pillars such as your classic car collection or the money stuffed in your mattress. This can be used any time as you wish. Even when you are a Swiss resident.

Pillar 3b Voluntary contributions are simply known as spending less, saving money, and investing.


Pillar 3a is the next simplest. If you move abroad you can cash it in. Citizenship does not matter.

Pillar 3a Voluntary contribution does not make any sense at all. No tax advantage when you pay in, tax when you get the money, other financial products have better returns.

Pillar 2 non-mandatory part, same as with Pillar 3a. But you might have to cash in the mandatory part as well.

Pillar 2 mandatory part. Here it begins to get tricky. Switzerland has some agreements with other countries, specially the EU and EFTA. If you have emigrated to an EU/EFTA state and are not subject to the social security obligation in that state (e.g. if you make no contributions to the local pension system), you may be able to withdraw the full amount. Citizenship does not matter.
https://web.aeis.ch/EN/pages/216/Cas...o%20emigration
http://www.verbindungsstelle.ch/xml_...on/d51/f61.cfm

UK and Brexit
Till December 31, 2020 same rules as for EU/EFTA. Afterwards like non-EU/EFTA unless a new agreement between UK and Switzerland is drawn up.
http://www.verbindungsstelle.ch/xml_...ation/f650.cfm

Pillar 2 voluntary contributions while residing abroad. Not sure if possible, but in the end like pillar 3a it would not make any sense: No tax advantage when you pay in, tax when you get the money, and other financial products have better returns.
https://web.aeis.ch/EN/pages/240/Vol...%20individuals

Pillar 1 if you move to an EU/EFTA country: Not possible https://www.ahv-iv.ch/p/880.e

Pillar 1 if you move to a non-EU/EFTA country: Possible if you are not a citizen of any of the countries Switzerland has a concluded a Social security agreement.
https://www.ahv-iv.ch/p/10.03.e

Pillar 1, voluntary contributions are possible in certain cases. https://www.ahv-iv.ch/p/10.02.e


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