Transfer to a new pension fund, provided you have entered into a new employment relationship.
- Transfer to a vested benefits foundation, where the retirement assets are held and managed until withdrawal.
Consider splitting
Before choosing the second option, you should consider splitting your retirement assets. Many pension funds allow you to divide your retirement assets between two vested benefits accounts. This enables you to withdraw your assets in different tax years once you reach AHV retirement age. In this way, you reduce tax progression and can save on taxes.
Important point to note
Please note that when you leave the pension fund, your insurance cover in the event of disability or death also ceases. You should therefore, where necessary, take out separate insurance in order to maintain this protection. With vested benefits accounts, you can choose between a standard account solution and a self-selected investment strategy. With an account solution, you receive interest on your assets, depending on market conditions. If you opt for an investment solution, you will first answer a number of specific questions. On this basis, your risk profile is determined. You then select a suitable investment strategy. Depending on the strategy, your assets are invested in a broadly diversified manner or up to 100% in equities.
Withdrawal options
If certain conditions are met, you may withdraw your retirement assets or transfer them to another pension solution. The following options are available, among others:
- You transfer your assets to a new pension fund.
- You permanently emigrate abroad.
- You withdraw your assets on reaching AHV retirement age (from age 60).
- You make an advance withdrawal for owner-occupied residential property.
- You withdraw your assets in order to become self-employed.
- You receive a payout on the grounds of disability.
Avoid common mistakes
If you open a vested benefits account, you should avoid common mistakes. For example, do not ignore your investment time horizon and do not miss the deadline for transferring your assets to an active pension fund. Inform yourself at an early stage and plan the next steps carefully so that you can protect and make the best use of your retirement assets.
Special situation
If you are already 58 or older when your employment is terminated, you have special options. In certain circumstances, you may remain insured with your previous pension fund.