When you withdraw money you have saved from your pension, a tax is payable: the capital payment tax (also known as capital tax or capital withdrawal tax).
Find out in the article how you can cleverly optimize this tax.
Inflation refers to the process of a general increase in the prices of goods and services in an economy over a certain period of time. When inflation increases, the purchasing power of money decreases, which means that less can be bought for the same amount of money. Inflation is often…
Does your new partner live in a neighboring country and you are moving in with her? Or are you coming to Switzerland to work? Then you become a cross-border commuter. These are people who live in one EU/EFTA country and work in another EU/EFTA country. But where do cross-border commuters…
The amount of your individual AHV old-age pension is determined by the amount of contributions you have paid in or been credited (i.e. for education, care) and the number of years of contributions. The combination of a full contribution period with pension scale 43 (for women) or 44 for men…
Do I have to pay AHV contributions as a pensioner? In principle, yes. If you decide to continue working after the normal retirement age, you must continue to pay AHV contributions on this income under current law. This does not apply to income of less than CHF 1,400 per month…
When can I retire and receive a full pension? This is determined by the reference age. This term replaces the previous “ordinary retirement age” of 65 for men and 64 for women. This is because the Swiss population approved the AHV21 reform on September 25, 2022. It came into force…
The BVG is the Federal Law on Occupational Old Age, Survivors’ and Disability Benefit Plans. It regulates occupational pension provision (the so-called “2nd pillar”) in the Swiss pension system. The 2nd pillar is intended as a supplement to the 1st pillar and provides supplementary benefits in old age and in…
In Switzerland, the normal retirement age until 31.12.2023 is 65 for men and 64 for women. With the adoption of the AHV21 reform in September 2022, the normal retirement age for women will also increase in stages to 65 by 2028. This will then be referred to as the “reference…
What are teenage years? These are the first 3 years of AHV contributions. In principle, everyone in Switzerland must pay AHV contributions. As an employee, you are obliged to pay OASI contributions from January 1 after reaching the age of 17. If you are not gainfully employed, you are obliged…
The technical interest or technical interest rate is an estimate of the expected long-term return on pension assets. The technical interest rate is a calculation parameter used by your pension fund to express future benefits and contributions in today’s values. It therefore reflects the fund’s expected return on pension assets….
The retirement assets are your accumulated capital in the “pension fund account” of your pension fund. Depending on the pension fund, this may also be called AGH, savings assets, pension assets, termination benefits or similar.
Retirement credits are all the savings contributions that you and your employer(s) have paid into your occupational benefit scheme. So, credit is a nice way of describing the monthly compulsory contribution that you pay into your 2nd pillar. And the amount of the retirement credits increases with your age.
The coordination deduction is the part of your OASI-liable income on which you do not pay contributions to the occupational pension scheme. It amounts to ⅞ of the maximum single AHV annual pension, i.e. CHF 25,725 (as at 2024). The pension fund uses the coordination deduction to calculate your insured…
The conversion rate (also UWS) is a percentage percentage rate that you can use to calculate your annual lifelong pension from your retirement assets. Genauer gesagt handelt es sich um einen Mindestumwandlungssatz. Dieser schreibt vor, wie das Altersguthaben bei Rentenbeginn in der obligatorischen beruflichen Vorsorge ( obligation ) is converted…
The minimum interest rate is the minimum interest rate that a pension fund must pay on the BVG retirement assets in a given year. Dieser Zins wird jährlich vom Bundesrat neu festgelegt. Dabei berücksichtigt er die Renditeentwicklung verschiedener Wertanlagen wie Bundesobligationen, Anleihen, Aktien und Liegenschaften.
Non-mandatory benefits – these are benefits provided by a pension fund that exceed the statutory minimum occupational benefits. While the mandatory thus comprises the mandatory BVG benefits, the extra-mandatory benefits are an extra.
Tax progression means that a higher tax rate applies to higher incomes and assets than to lower incomes. Switzerland and most other countries use progressive tax rates. In Switzerland, only the cantons of Obwalden and Uri have a flat-rate tax (as of 2021). With a flat tax, the tax rate…
Was sind Fehljahre? Missing years are years in the AHV contribution period in which your account has gaps in contributions. This is because how much AHV pension you will receive in the future depends on how many contributions you have paid and for how long. Shortfall years are therefore years…
Early withdrawal for home ownership (WEF) means that you use your pension assets before retirement to finance owner-occupied residential property. Dazu kannst du Mittel ganz oder teilweise auszahlen lassen oder verpfänden.
Every pension fund must always be in a position to meet its obligations to its insured members. A simple indicator shows whether it is able to do so: the coverage ratio. It shows the ratio between the assets and the obligations of a pension fund. Underfunding means that the funding…
A pension fund must be able to cover its obligations at all times. A simple key figure indicates whether it is able to do this: the coverage ratio. It shows the ratio between the value of the assets and the liabilities of a pension fund.
The mandatory benefits are minimum benefits that you receive from the 2nd pillar.
AHV stands for “old-age and survivors’ insurance”. It is the cornerstone of pension provision in Switzerland and is therefore also known as the 1st pillar.
Vested benefits are money that you are entitled to if you leave a pension fund before it pays out benefits for you. The vested benefits are also known as termination benefits or vested benefits money.
