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Changing jobs or moving abroad? What about your pension?
Frequent job changes and stays abroad are common in many careers. But what does this mean for your pension fund assets? A lack of oversight can lead to pension gaps. We'll show you how to actively monitor your retirement savings, identify gaps, and close them effectively.
Managing your pension: The key steps
A dynamic professional life requires a clear head when it comes to your pension. With these three steps, you can maintain a clear overview:
- Review your assets: Each time you change jobs, make sure your full pension fund assets are transferred to the new pension institution.
- Identify gaps: Your personal insurance certificate shows whether any gaps have arisen – for example, due to stays abroad or salary increases.
- Close gaps: A voluntary buy-in is the most effective way to strengthen your retirement savings and save on taxes at the same time.
A dynamic career – a stable pension
Modern careers are rarely linear. Frequent job changes, a professional reorientation, or a work assignment abroad are part of daily life for many. This flexibility is valuable, but it poses particular challenges for your occupational pension. To ensure your saved assets are not lost or that gaps do not form over the years, it is important to actively keep an eye on your pension fund with every career move.
NOTE
Key terms explained simply
- Occupational pensions (OPA): Occupational retirement, survivors’, and disability pensions, also known as pillar 2, are mandatory in Switzerland for employees above a certain income. The Federal Act on Occupational Retirement, Survivors’ and Disability Pension Plans (OPA) sets out the minimum requirements.
- Vested benefits: This is your total accumulated pension fund balance that is transferred to your new pension fund when you change jobs.
- Vested benefits account: A special account where your assets are “parked” if you are temporarily not affiliated with a pension fund (e.g., during a stay abroad).
- Voluntary buy-in: An additional contribution to your pension fund to close any gaps and improve your retirement benefits.
Changing jobs in Switzerland: Keeping your assets on track
When you change jobs within Switzerland, your previous pension fund assets, known as vested benefits, must be transferred to your new employer’s pension institution. To ensure your assets arrive safely, it is important that you initiate the transfer. Inform your former pension fund about your new pension relationship.
If the assets are not actively transferred to the new pension fund, they will be deposited into a vested benefits account with a bank or insurance company. Such accounts can be forgotten over time. The LOB Guarantee Fund Foundation (2nd Pillar Central Office) helps you keep track and locate any forgotten assets.
Working abroad: Parking your pension assets correctly
If you leave Switzerland to work abroad, you cannot leave your pension fund assets with your previous pension institution. The capital must be transferred to a vested benefits account with a vested benefits foundation of your choice.
Under certain conditions, particularly when moving to a country outside the EU/EFTA, a cash payout of the non-mandatory portion of your assets is also possible. However, be aware that a payout will significantly reduce your retirement benefits. A stay abroad also often leads to contribution gaps, which can reduce your future pension.
Actively closing pension gaps: Your options
Whether due to a stay abroad, further education, or a salary increase – pension gaps can arise, but they can also be closed. The most effective method for this is a voluntary buy-in to your pension fund.
Your benefits at a glance:
- Better benefits: You increase your retirement savings, securing a higher pension in old age. Depending on the pension plan, your disability or death benefits may also improve.
- Save on taxes: You can fully deduct the amounts you buy-in from your taxable income, thereby reducing your tax burden.
The maximum possible buy-in amount can be found on your personal insurance certificate.
We are here for you
Your occupational pension is a key pillar for a financially secure future. As your reliable partner, we support you in maintaining an overview and making the right decisions, even with a dynamic career path.
Do you have questions about your personal pension situation or would you like to discuss your options? We are here for you.
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