Switzerland offers taxpayers a lot of freedom. This also means that the state supports natural persons with their pension provision by promoting deductions in this context and reducing the tax burden. Those who put a little thought into this will certainly benefit from it. Have you ever considered buying into a private or professional pension plan? Here, you’ll find out whether and how clever pension management affects your tax bill and your pension capital.
Buy into the second or third pillar?
Depending on your income situation, future plans and age, buying into an occupational pension plan (second pillar) or private pension plan (third pillar) is an attractive way to save on taxes and invest retirement capital at the same time. Buy-ins into the two pillars have different characteristics. Decide for yourself what suits you best. Of course, buying into both the second and third pillars at the same time is also possible.
Purchase of additional second pillar benefits: Best spread over several years
You can deduct any amount that you pay into your pension fund from your taxable income. Please note:
- A prerequisite for buying in is a gap in coverage. This is available to most people and can be seen on the pension certificate (maximum buy-in amount).
- Depending on the pension fund, a buy-in must be at least CHF 5,000.