What will I get from my pension fund at retirement?

The transition to retirement is a significant phase of life. Your retirement savings accumulated in the pension fund (pillar 2) play a central role. They are intended to secure your accustomed standard of living even after you retire. The amount of your benefits depends on your accumulated savings, the applicable conversion rate, and the type of payout you choose.

In brief:

Three options: You can draw your savings as a monthly pension, a one-off lump-sum payment, or a mixture of both.
Your insurance certificate: All your personal figures can be found in your insurance certificate, available digitally at any time from Tellco in the ePlix portal.
Decision support: Each option has its pros and cons. Careful planning is crucial for your financial future.

Pension, lump sum or a combination: An overview

Basically, there are three ways for you to receive your old-age benefits. The choice should be carefully considered, as it has long-term financial implications. The following table helps you compare the options at a glance:

Feature	Lifelong pension	Lump-sum payment	Combination
Security	Very high, guaranteed for life	Lower, due to personal responsibility	High, due to fixed pension portion
Flexibility	Low	Very high, freely available	Medium, depending on the split
Responsibility	Lies with the pension fund	Lies entirely with you	Shared
Taxes	Pension is taxed at 100% as income	One-off, reduced capital benefits tax	Shared: capital benefits tax and income tax

1. The lifelong old-age pension: Security and predictability

The classic option is the lifelong pension paid out monthly. Your retirement savings are multiplied by the conversion rate. The conversion rate is the percentage used to convert your accumulated savings into an annual pension.

Calculation example:

Your retirement savings: CHF 400,000
Conversion rate: 5.8%
Annual pension: CHF 400,000 × 5.8% = CHF 23,200
Monthly pension: CHF 1,933.33

This option offers you a regular, guaranteed income for the rest of your life, providing maximum planning security.

2. The lump-sum payment: Maximum financial freedom

You can also have all or part of your retirement savings paid out as a one-off lump sum. This allows you, for example, to pay off the mortgage on your house, plan renovations or provide financial support to your children.

Important aspects of the lump-sum payment:

Flexibility: You can make larger investments or fulfil long-held wishes.
Taxes: The lump-sum payment is taxed once, separately from other income, at a reduced rate (capital benefits tax). The amount of tax depends on your canton of residence and the size of the payment.
Personal responsibility: You are solely responsible for managing and investing the assets to ensure your long-term financial security.

3. The combination: Flexibility and security united

A middle way can be an attractive solution: you draw part of your savings as a lump sum and receive the rest as a lifelong pension. This model combines the advantages of both options. With the capital component, you could, for example, pay off a mortgage, finance a major trip or make alterations to your home. The remaining part of your savings is converted into a pension, which provides you with a stable monthly income for ongoing living expenses. This gives you financial freedom for your plans while enjoying the security of a guaranteed, lifelong payment.

Your insurance certificate: The basis for your decision

All the figures relevant to your planning can be found in your personal insurance certificate. It shows you transparently:

Your currently accumulated retirement savings.
The projected pension at normal retirement age.
The capital value you would receive as a lump-sum payment.

At Tellco, you have access to your digital insurance certificate at all times via our insured persons portal ePlix. For a better understanding of all the details, we recommend our explainer page for the insurance certificate.

Step by step to a lump-sum payment

If you decide on a full or partial lump-sum payment, early planning is important.

Submit application: Fill out the application for a lump-sum payout (PDF).
Observe deadline: Your written application must reach us by the time you reach retirement age at the latest. Allow sufficient time.
Partner’s consent: If you are married or in a registered partnership, the written consent of your partner is required. This is a legal requirement to protect both partners.

TIP

Take care of the formalities early on. This ensures that your right to a lump-sum payment does not expire and that everything runs smoothly.

We are here for you

Choosing the right form of payout is an important decision for your financial future. As a first step, check your current insurance certificate. Do you have questions about your personal situation? The Tellco Pension Fund supports you with transparent information and flexible solutions. Contact us for a personal consultation.

_{Legal Notice: The content provided in this Knowledge center is intended solely for general informational purposes. It does not constitute binding information, does not replace legal, tax, financial or any other professional advice, and does not contain any recommendation to enter into, amend, or terminate contracts.

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