PensFree
The customised vested benefits institution for your retirement lump-sum capital.
Your benefits with PensFree
You decide what goes into your retirement custodian account: PensFree offers you numerous mixed strategy profiles from investment foundations and investment funds depending on your personal risk capacity and risk appetite. You benefit from institutional tariffs, which brings tangible cost advantages and has a positive impact on the performance of your investments.
Tax exemption: Vested benefits are tax exempt until they are withdrawn. This allows you to benefit to the maximum from PensFree. Take advantage of our many years of experience and benefit from tax-exempt interest and dividend income.
Tax benefits on lump-sum withdrawals: With our personal advice, you benefit from tax advantages when withdrawing your pension assets. Would you like to know how much capital tax will be charged if you withdraw your pension assets? Or are you planning to move abroad and want to work out how much withholding tax you’re likely to pay? You can use our two online calculators to find the answer.
Tax savings when moving abroad: If you are leaving Switzerland definitively and want to have your pension assets paid out, the one-off tax is not charged at your last place of residence, but at the applicable tax rate in the canton where the vested benefits institution is based. PensFree enables you to benefit from the foundation’s domicile being in Schwyz.
Lifelong retirement pension: PensFree offers you the option of a lifelong retirement and surviving spouse’s pension. Put your financial security first and optimise your pension planning with a lifelong retirement pension. A lifelong pension can be claimed as early as five years before the normal pensionable age.
How does PensFree work?
Mixed strategy profiles
PensFree offers you numerous mixed strategy profiles from investment foundations and investment funds depending on your personal risk capacity and risk appetite. You benefit from institutional rates for all your investment solutions. This brings tangible cost advantages, which positively affects the investment returns of your assets.
Free choice of bank, free choice of strategy
PensFree works with various banks, investment foundations and fund providers. The choice of bank and way in which the investment strategy is implemented is entirely yours. A mortgage to finance an owner-occupied home also generates additional value.
Benefit from our network
Investment is a trust-based business. At PensFree, in addition to our founding partner, the private bank Reichmuth & Co, you can select the bank of your choice from our extensive network.
Investment strategies with a discretionary asset management mandate
The advantages of a customised investment strategy are greatest if you want to use specific securities or special themes, such as infrastructure or sustainable investments for your selected strategy. For diversification reasons, these strategies are only suitable for larger pension pots. You attain maximum benefit when you align your retirement portfolio with your private assets.
Opportunity to invest in your own property
Usually homeowners take out a mortgage with a bank and pay interest to the bank. Within a fund investment, Pens3a gives you the unique opportunity to raise a mortgage from your vested benefits assets. The interest you pay on the mortgage is tax-deductible and is paid back into your pension pot tax-free after deduction of fund fees.
Your advantages at a glance:
- Attractive alternative to fixed-income securities
- Low-risk investment for increased stability in the retirement custodian account
- Mortgage up to 100% of pension assets possible
- Interest payments are tax-deductible
- Income is paid tax-free into the retirement custodian account
Residence in Switzerland
A one-off tax applies to the withdrawal of pension assets. If you are resident in Switzerland, your pension assets are taxed separately from other income at a preferential rate. The level of this capital payment tax varies from canton to canton.
You can reduce the tax impact through advance withdrawals for financing owner-occupied property or, if you have several vested benefits accounts, by staggering the lump-sum withdrawals.
If the pension or vested benefits assets are withdrawn after moving abroad, in many cases double taxation agreements («DTAs») govern whether Switzerland or the new country of residence is entitled to tax the lump-sum withdrawal. In the absence of such a DTA, withholding tax is always applied in Switzerland and, in certain cases, there may even be double taxation. Our tax experts will assist you in this important tax issue together with network partners in various countries.
Retirement lump-sum capital or retirement pension?
There are some important points to bear in mind when withdrawing pension assets. Plan as early as possible.
PensFree always pays out pension assets as retirement lump-sum capital or a retirement pension (annuity). If required, the retirement lump-sum capital can be withdrawn at the earliest five years before the regular AHV/AVS retirement age.
Transfer to private assets
PensFree enables you to transfer your investment portfolio to your private assets if you make a lump-sum withdrawal.
Additional withdrawal options
Taking up self-employment
You can also have your vested benefits assets paid out if you take up self-employment as your main source of income and are no longer a member of a pension fund. This must be done within the first year of starting self-employment.
Withdrawal under home ownership scheme
You can withdraw some or all of your vested benefits assets to finance owner-occupied home ownership.
You are moving abroad
A withdrawal is also possible in the event of a definitive departure from Switzerland.
Lifelong retirement pension
Retirement marks the beginning of a new phase in life that offers plenty of creative freedom. At the same time, there are many question marks – as varied as plans for the third stage of life can be, so are the questions about how to finance it. AHV/AVS and pension fund assets are usually paid out as a pension, although there is also the option of a lump-sum withdrawal with the pension fund. Whether to draw a pension or a lump sum is a question of needs. If the pension assets are in a vested benefits institution at the time of retirement, this option does not apply. The financial security of a lifelong pension is not available.
PensFree offers you the option of a lifelong retirement and surviving spouse’s pension. Put your financial security first and optimise your pension planning with a lifelong retirement pension. A lifelong pension can be claimed as early as five years before normal retirement age.
Combining a lump-sum withdrawal and a pension allows you to tailor the drawdown of your pension assets to your individual needs. The minimum BVG/LPP portion is always paid out as a lump sum, while the extra-mandatory portion can be drawn as a pension.
If you wish, you can also insure a partner’s pension in PensFree. You have the option to set the level of the partner’s pension individually, although the conversion rate is based on your personal situation.
I greatly appreciated PensExpert’s advice, punctuality and professionalism! I can rely on the advisors at all times.
Christian E.
PensFree client
Insurance cover
Individually insured, protected globally
As a result of the globalised economy, the labour market is changing ever more rapidly. The stable employment biographies of past years are no longer the norm. In future employees will live with periods of economic inactivity and maintain their employability during this time with education and training or an extended stay abroad for a language course. However, periods of employment abroad will also become increasingly common in the modern world of work.
Many pension funds and vested benefits institutions are unable to offer a satisfactory pension solution for global mobility. At PensFree you will receive the advice and insurance models that meet your needs. As a vested benefits foundation with wide-ranging expertise in pension provision, we can close gaps in your insurance cover for death and disability and ensure you have the optimum coverage.We would be happy to provide you with a personal proposal. Please fill in the form below.