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Opening a vested benefits account

Vested benefits account

Increase your pension benefits with our solutions designed to meet your specific needs.

Opening a vested benefits account

What is a vested benefits account in Switzerland?

In Switzerland, a vested benefits account is a bank account that you transfer your pension savings to if you leave your job to take a break from work, move abroad, get divorced or become self-employed and do not join a new pension fund.

When are you allowed, or required, to open a vested benefits account?

  • You leave one pension fund and you cannot transfer all your pension assets to a new one.
  • You stop working.
  • You become self-employed.
  • You get divorced or dissolve a registered partnership.
  • You are no longer legally required to have pension cover.
  • You leave Switzerland permanently.

Why open a vested benefits account?

A vested benefits account is a way to protect and grow your retirement savings while giving you the flexibility and freedom to invest in strategies tilted to your goals.

The many advantages of opening a vested benefits account

  • Protect your capital

    Your capital remains occupational pension savings and cannot be seized for the most part, even if you file for personal bankruptcy.

  • Potentially earn a return

    The capital invested may earn attractive returns depending on the portfolio(s) you choose to invest in.

  • Take advantage of a tax break

    The funds in your account and the interest you earn are not taxed until you receive them.

  • Build a portfolio that suits your attitude to risk

    Our investment strategies are designed to maximise the growth of your assets while staying within the limits of your risk tolerance.

How to open a vested benefits account

You can open a vested benefits account with the Pictet Vested Benefits Foundation online by sending the forms by email or post. If you choose the latter, we recommend that you follow these instructions:

1. Understand what kind of investor you are

To choose the best investment strategy for your needs, you first have to determine your risk tolerance – meaning your ability to cope with fluctuations in the value of your invested capital – and how long you expect to stay invested.

2. Decide how much you want to invest

When you transfer your assets from a pension fund or vested benefits scheme, you can choose how much of your capital you want to invest.

3. Choose a portfolio or asset allocation

You can allocate your pension capital as you deem fit across our seven investment portfolios. You can also choose not to invest and to park all or part of your vested benefits for however long you wish.

If you can afford to take risks, you should choose a portfolio that invests a large percentage in shares. You could potentially earn higher returns, as long as you can handle the fluctuations in the value of your capital.

4. Fill out the form and submit the necessary documents

You can send all the documents by email or post. We will let you know as soon as your account has been opened. If you attach the transfer form to your account-opening application, we will forward it to your current institution and make sure your assets are transferred to Pictet’s Vested Benefit Foundation.

Our investment portfolios at a glance

Frequently Asked Questions (FAQ)

How are my assets invested?

When you have a vested benefits account, you legally own a portion of the Foundation’s assets in the form of units in the investment portfolios. Units in the portfolios are subscribed the day after we receive your payment. The price is the net asset value of a unit calculated two business days after the amount is credited to your account.

How do I switch portfolios?

You can adjust the allocation of your assets among the different investment portfolios at any time depending on your needs, your personal situation or financial markets. Or, you can choose to park your capital and not invest until the time is right for you. Send your instructions to the Foundation in writing and we will make the change the day after we receive them.

When can I draw my pension benefits?

Your vested benefits will be distributed to you when you reach what’s called the reference retirement age in Switzerland, or 65. If you die before reaching 65, your capital will be paid out to any beneficiary(ies) you will have designated. You may, however, draw your benefits any time after 60 (at the earliest), or wait until you reach 70 (at the latest).

Am I allowed to withdraw my pension capital?

As an account holder, you can redeem your units in the following cases, subject to your spouse’s or civil partner’s consent, if applicable: - you become self-employed and are no longer subject to mandatory occupational pension coverage; - you use your capital to purchase residential property under Switzerland’s home ownership encouragement scheme (known as WEF); - you pay the capital into a tax-free occupational pension scheme, or use it for another recognised form of retirement savings; - you leave Switzerland permanently; - you start to collect Swiss federal disability benefits.

How can I redeem my units?

You can redeem your units if you meet the conditions of Articles 9 and 10 of the Foundation’s regulations. The redemption price is the net asset value of one share unit calculated two business days after we receive your instruction.

How are withdrawals taxed?

The returns on your capital are not subject to withholding tax and are not taxed at the Swiss federal or cantonal level until your capital is distributed. There is also no wealth tax on the capital as long as you do not withdraw it.
Calculate taxes

What happens to a vested benefits account if the account holder dies?

The account can be passed on to the following beneficiaries 1. ‘Survivors’ within the meaning of Switzerland’s Occupational Pension Law: spouses and registered partners (Articles 19 and 19a), as well as minor children and children pursuing full-time education up to the age of 25 (Article 20). 2. Persons whose maintenance was largely provided by the account holder, the person who cohabited with the account holder for at least five straight years immediately before the account holder died, or any person who has to provide for the maintenance of one or more children in joint custody with the account holder. 3. Any children of the deceased who do not meet the conditions of Article 20 of the Occupational Pension Law, parents or siblings. 4. Any other legal heirs (with the exception of government entities). The account holder can specify the rights of each of the beneficiaries in the contract and include persons mentioned in point 2 with persons mentioned in point 1.

Contact our expert

Our expert is available to assist you, by telephone or email, to advise you on opening your vested benefits account (2nd Pillar) and to introduce you to our investment solutions. Please feel free to contact him.

By telephone

+41 58 323 29 20
Monday to Friday, 9.00 am to 12.00 pm and 2.00 pm to 6.00 pm

By email

Pascal Kessler
Expert Pension Fund

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