Maximising the growth and tax efficiency of Swiss 'Second Pillar' pension funds after leaving Switzerland
The Client's Challenge
As an expat working in Switzerland, Mr B had built up a significant Swiss ‘Second Pillar’ pension. When he left Switzerland in 2012, the funds from this pension were automatically moved into a Swiss ‘Libre Passage’ cash deposit account and remained there for 10 years earning just 0.6% interest per year.
After an initial consultation and subsequent ‘fact find’ conversation we were able to help Mr B move the funds from this low interest account to another regulated, Swiss pension plan.
This allowed Mr B to invest the funds in a balanced investment portfolio with the potential to generate significantly more growth over the long-term.
Moreover, as Mr B had left Switzerland permanently, I explained that up to 100% of the value of the funds, could be withdrawn in the future, irrespective of his age, depending on where he was resident.
As part of the future planning put in place for Mr B, we also ensured that our recommended pension solution would minimise the Swiss exit tax, by moving the funds to a Swiss Canton with a low rate of tax.
Mr B is now invested with the opportunity to grow his pension funds substantially more over the long-term than with a bank deposit.