Regular withdrawal from the pension fund
When you reach normal retirement age (currently 65 for men and 64 for women), the pension fund assets are available to you as normal. You basically have the following options:
Capital paymentThis means you receive your entire pension fund assets as a one-off payout. This offers flexibility, as you can decide for yourself how to use the money. However, you must note that a Capital payment of a capital benefit tax and you have to pay tax on the amount. If you withdraw the capital, you are now responsible for managing and maintaining your assets yourself.
Monthly pensionThis option offers you a regular payment for the rest of your life. An annuity guarantees financial security and is particularly attractive if you want to avoid the risk of your capital being used up too quickly.
Combination of bothYou can also choose a combination of lump-sum payment and monthly pension to combine flexibility and security. So it doesn't always have to be a pension OR a lump sum. This can be a good solution if you want to have a larger amount available for larger expenses on the one hand, but at the same time want to secure a regular source of income.
The choice between a lump-sum payment and a pension is a crucial question that should be considered carefully. Comprehensive financial planning and advice can help you make the best decision for your situation.
Hello Eric, I am planning to leave Switzerland at the end of the year after 15 years and move back to Germany. There I will become self-employed as a real estate agent. Is there also the possibility of a full payout there? Or even if you buy a property, whether on the border or in the north? Thank you for your feedback. MfG René
Hello René,
As Germany is an EU country, when emigrating you can only use the extra-mandatory part can be paid out. As far as I know, the mandatory BVG portion remains in a vested benefits account until normal retirement age.
But: You become self-employed - this could be a way to get a full payout. If you start your own business still in Switzerland as a sole trader and are recognised by the AHV compensation fund, full payment is generally possible. You must submit the application within one year. As far as I know, this would not work as a broker in a GmbH or AG. Be sure to clarify this with your pension fund in advance - the timing between deregistration, self-employment and application is crucial here.
On the subject of property: As far as I know, the home ownership subsidy (WEF) only applies to owner-occupied property in Switzerland, not abroad. But here too, I would recommend that you enquire directly with your pension fund to be sure.
In general: Speak before the move with your pension fund and seek advice. With 15 years of contributions, you're talking about a lot of money, so it's worth getting professional advice.
Good luck with the restart!
Best regards
Eric
Hello Eric
The tips you give are great.
I have a problem with my vested benefits foundation, as I have not received a response to any enquiries for over a year.
Now, finally, I have been told that the Aargau catobank foundation is responsible, and I have enquired and am waiting for an answer, but I have already enquired there.
The supervisory authority says it is not responsible for such cases!
It is very difficult to get accurate information about my account balance.
Who can I contact?
I was a cross-border commuter in Germany and had previously lived in Switzerland!
Thank you already
Hello Werner and thanks for your comment!
That sounds really frustrating - over a year without a response is unacceptable. I would recommend that you contact the ombudsman's office for Swiss banks (bankingombudsman.ch). If you are not sure whether your assets are still with AKB, you can start an enquiry via zentralstelle.ch. As a former cross-border commuter resident in Germany, you are still entitled to your vested benefits - they do not expire.
Good luck and please let us know how it goes!
Kind regards
Eric
Hello
I am a German citizen and have lived in Switzerland for 8 years. Now I have officially deregistered from Switzerland and have no permanent residence but am travelling for an indefinite period. I would like to have my pension fund paid out, but I need confirmation that I am not married. This is proving very difficult. Do you have any tips for me?
Hello Anja! This is a tricky situation. The easiest way would be to obtain a certificate of unmarried status from the registry office in your place of birth in Germany - this is called a «certificate of entry in the marriage register» and costs around 10-15 EUR. If that doesn't work, you can submit an affidavit to the German consulate. It is best to ask your pension fund directly which document they will accept. Important: The cash payment application must be submitted within 1 year of leaving Switzerland for good, and as an EU citizen you can probably only draw the BVG mandatory pension.
Best regards, Eric
Hello!
I quit my job in June and would like to start my own business as a freelance author. I wanted to have my pension assets paid out for this, but now I've been told by my ex-employer that this is only possible if I set up a sole proprietorship, but not in my case. Is artistic self-employment really excluded? Kind regards, Jürgen
Yes, your former employer's statement is partly correct, but it is not completely accurate. The decisive factor is whether your self-employment is recognised by the AHV compensation fund as your main occupation - not whether you set up a sole proprietorship, GmbH or AG.
Requirements for a lump-sum withdrawal from the pension fund
Under Swiss BVG law, you may withdraw your pension fund assets in cash if you:
- take up full-time self-employment,
- you are no longer subject to the mandatory occupational benefit scheme (BVG),
- and register your self-employment within one year of admission.
The pension fund may only pay out the withdrawal if you provide the AHV compensation fund with confirmation of your self-employment (AHV certificate). The AHV checks whether you are working at your own risk and in your own name (e.g. invoices, contracts, website, proof of customers)
I can double my money by investing in property in an EU/EFTA country. But I need money from my pension fund.
I will retire in 4 years. Is it possible to draw a portion?
In this case, unfortunately not, but later at the normal retirement age. However, the question is whether the money will then be needed for the pension / living expenses.
Hello
I still live in Austria but will be moving to Switzerland in the next month (main residence)
I am 57 years young and wanted to ask:
*Can I have my entire pension paid out and buy a small house in Switzerland as my main residence?
* and still work for a few more years?
Hello Sandy,
Unfortunately, I am not familiar with the regulations in Austria, so you should look for local sources. But if you have any questions about Switzerland, you've come to the right place.
I wish you a good move and see you very soon
I have tax debts and have to pay them back. I also have alimony for my 3 children. I have changed my job and earn less but am much happier and more satisfied than before. I would like to have the court judgement regarding maintenance payments adjusted and this also costs a lot of money again. Is it possible to withdraw money from the pension fund to pay off debts? I don't want to get into debt either privately or with a bank. I would be pleased to receive an answer. Kind regards
Hello, Peter,
Unfortunately, early withdrawal from the pension fund to settle debts is not possible in Switzerland. The legal requirements for a withdrawal are very strictly regulated and do not include tax debts or alimony.
My tip: Contact a professional debt counselling service in your canton. This is usually free of charge and can provide you with concrete help:
- Create budget planning
- Negotiate with creditors (payment by instalments)
- Check legal options
The counsellors know all the local support options and can provide you with the best possible support.
I wish you all the best and that your situation eases soon!
My girlfriend (55) and I (57) would like to buy a house in DE (just over the border). Can we take out our pension fund money and how much? Do we have to live in it immediately? As we both still have a job in central Switzerland, we would like to renovate and commute first.
What about the taxes for the house in DE?
Thank you very much for your feedback.
Kind regards
Yes, you can draw pension fund money to buy a house in Germany. Important points:
- The house must become your main residence
- A short renovation phase is permitted, but permanent commuting without the intention to move is not
- Minimum amount: CHF 20,000
- Maximum: your total current termination benefit (as you are over 50)
- Purchases from the last 3 years are blocked
Be sure to speak directly with your pension fund about the planned time frame for renovation and relocation. Most of them expect you to move in within 1-2 years.
I live in the canton of Lucerne and am planning my early retirement.
As Lucerne's capital tax is too high and will not be reduced until 2028,
I plan to have my pension fund paid out by another canton - like Schwyz.
But where do I pay the capital tax if it's in Schwyz? In Lucerne or Schwyz?
at your tax domicile - unless you were to emigrate, in which case there would be further differences.
Hello...I am a cross-border commuter to Germany and will retire in two years. I would then like to make a partial payout from the PKE (and only from the supplementary pension...this would then be tax-free...I joined the PKE before 2005), but my PKE now tells me that this is not possible because it has an "enveloping settlement model" (i.e. there is always a BVG component which I have to pay tax on in Germany at my individual tax rate). Is there no chance of having only a part of the extra-mandatory portion (without the BVG portion) paid out to me?
Good day
My wife has recently become self-employed and has worked very little in Switzerland. Can I have part of my pension paid out? Since she has the rights, we got married at the time. to support her. Is that possible? Thank you very much for the information and stay healthy
Hello Michel
You cannot withdraw your PF beforehand without further ado. However, your wife can access pension assets as part of a new self-employment, such as explained here will.
Best wishes and good luck!
Eric
I worked in Switzerland from August 2013 till December 2014 and came back to my home country which is India. I understood from a colleague recently that PF amount contribution during my stay in Switzerland can be withdrawn. I wanted to understand the process to get that done.
probably the best advice would be to ask your last pension fund. they will assit you in the process
My daughter Diana Lehner- Müller was employed at the post office for many years where she had to stop for health reasons. she will be 58 years old on 19 March 2024. now she works part-time where she earns FR. 1'000 per month. She is self-employed and owns a small house. With this salary she can
not survive. She has a pension fund yield of CHF 137,000 but it doesn't pay out anything, so what can she do? She doesn't want the house
only has a mortgage of CHF 170,000.
Please let me know for a solution to the problem.
With kind regards
Guido Müller
Dear Mr Müller,
Your daughter should discuss such an important topic with an independent financial planner. Before she takes any major steps, it is also helpful to get a second opinion to be really sure.
Feel free to email me if I can recommend you to someone. I wish you much success!
Hello, I have sent all the PF documents. Everything is OK. I am registered in Switzerland as of 30.6. My question is whether the money from the PF can be transferred before 30.6 (could be). Or are there laws that do not allow this?
Hello Manuel
the best thing to do is to talk to your PK directly, they know best what is valid and feasible here 🙂
I would like to transfer part of the funds from the pension fund to an account?
When is it possible at the earliest?
Is this a special account?
How is it taxed?
Hello Zaga,
So you are planning early retirement? There are differences depending on the PF.
As far as I know, a payout is possible from the age of 58. The account is your private account and capital gains tax is due, which is different in every canton. So there are a few things to take into account.
It is best to contact your pension fund. After all, you have to declare your lump-sum withdrawal in good time.
Love!
Good day ladies and gentlemen
I have opened a single company and would like to pay out the pension fund money.
but due to the fact that I am still working 100% on a company, a few people have told me that it is impossible to get the money to pay out.
I take a salary of 4000 CHF net in month, (100%). does anyone know how I could manage to get the money to pay out?
MFG Santiago
What percentage is this in the case of a BVG lump-sum withdrawal?
Advantage or disadvantage BVG pension or lump-sum withdrawal
Where can I find information on the compulsory insurance when moving to an EU country?
Hello Nicole, look for example at the Foundation for reception Sync and corrections by n17t01
Hello.
I emigrated to South America a year ago.
Now I would like to have all my PK money paid out.
But I don't know where the money is or how I can apply for it.
Can anyone help me?
Kind regards
Hello Salvatore, you should talk to your last pension fund or vested benefits institution about the payout if the money was parked there. It's best to look for your old pension certificates if you can still find them...
Otherwise, contact your last employer and ask which pension fund you were insured with.
A third alternative would be to contact the ombudsman's office, where you can certainly get help.
Best wishes into the warmth 🙂