Pension fund – pension or capital

Information & services

request a consultation

Shortly before retirement, many are faced with the following question: Should I draw my retirement savings from the pension fund as a pension or as capital? Or is a mixture the right solution for me? Helvetia points out the advantages and disadvantages for you.

Carry out various simple and straightforward pension analyses online.

Pension calculator

What income can I expect to receive from OASI and my pension fund after I retire? Will I be able to maintain my usual standard of living?

Capital gains taxes

How much tax must I pay if I withdraw money from my pension fund or pillar 3a?

2nd pillar – occupational benefit scheme

The pensions system in Switzerland is based on the 3-pillar model. The pension fund forms the 2nd pillar of pensions provision and is mandatory. All those in gainful employment with an annual income of CHF 21,330 or more are generally insured through their employer.

From the age of 25, in addition to death and disability, a retirement pension is also covered. The aim of the 2nd pillar is to maintain the usual standard of living for the insured and his/her relatives.

More information can be found at www.bsv.admin.ch

To draw retirement savings from the pension fund as a pension or as capital?

After you retire you have three options for drawing benefits from the pension fund: As a monthly pension, as a one-off capital withdrawal or as a mixture of the two. The decision may differ, depending on your aims and wishes.

Advantages
Pension	Capital
A safe, trusted solution	One-off reduced tax rate, separate from other income
Guaranteed pension for life	Assets can be disposed of flexibly, return in accordance with investment strategy
Conversion rate for the statutory portion 6.8% (further reductions are to be expected)	100% asset protection for descendants
	Pension guarantee possible

Disadvantages
Pension	Capital
Pension 100% taxable as income	Own responsibility for capital investments
40% pension loss for life partner 80% loss for children up to age 18 100% loss for all other heirs	Recommended only after an individual consultation
No inflation adjustment as a rule	Investment costs for asset management

Pension advice brings clarity

Get individual advice from one of Helvetia’s experts about the extent to which drawing a pension, withdrawing capital or “splitting”, a mixture of the two, may be a sensible solution. In addition to your personal family circumstances and your plans for retirement, they will also discuss tax and mortgage considerations.

Pension advice

However you want to approach your personal pension plan or your savings goals, Helvetia will be happy to help you.

Request a consultation