Buy a home and use your pillar 2 for half the downpayment. Invest the 10% you avoided using for the downpayment in stocks for (probably) higher returns.
If you’re jobless for 6+ months, the entire 2nd pillar usually gets transferred to a blocked account (Freizügigkeitskonto, FZK). You’re legally obligated to transfer the FZK to your next Pensionskasse, but this isn’t enforced and there’s no penalty if you don’t. If you don’t, you get to invest the FZK in stocks or bonds using Finpension, VIAC, etc.
Those seemingly small annual differences in return add up to surprisingly large amounts over time.
Thanks. I believe I’m in a good path. I became aware of the problems for 2045 around 10 years ago and have tried to optimize resources since then. I write about this issue because people believe that doing their part of the contract is enough. Germany it’s showing this is not a good bet.
Back to Switzerland/Germany. Maybe I’m too entitled, but I believe my generation is the one marton says it’s going sustain the 1st pillar in the future. Well, that support of working immigrants is happening right now and the trend of less workers per retiree keeps developing. 1st pillar works today, albeit with some patches like the recent increase in VAT. However, immigrants are a solution for today, not for year 2045.
I watched it, though with a few distractions. Have to watch again, out of curiosity. Towards the end it was said that for 10 years Switzerland didn’t pay out the retirees in Kosovo because there was no pension treaty between Kosovo and Switzerland. The treaty is there again but Switzerland won’t reimburse the missing years. WTF, and why the people didn’t register in any nearby country to make the money flowing? Also, when there’s no pension treaty, the whole pension should be paid out not just suspended
There’s many questions in my head about this case, but in the end of the day the summary is: never trust the government with your money. I’d love to take my 2nd pillar out of the system.
There was the possibility for them to get their money back but only what they paid in. And that is not good. Nor okay.
Fully agree. Never have. It’s not that they purpously cheat you here but they change a law and oooops.
I remember very well what they promised with the second pillar. And then they had the idea to drop the “Gesetzlicher Mindestumwandlungssatz” (deepl says Statutory minimum conversion rate). Several times although always after long phases.
I’m not against AHV - not at all, it’s a very good thing, even though not sufficient - second pillar is okay too but should be voluntary. Third pillar is voluntary and is a good thing too.
Imo there should be AHV as it is and third pillars voluntary as it is.
Remember not to put all in one third pillar. You can have several and cashing them in in separate years is better re taxes.
You obviously don’t know so much about the situation of the Kosovas (not blaming you for it, I just do since the war started there). They can not just register in an other country. Not to mention that the surrounding - new - countries still hate them. Or at least treat them as inferiors.
Also thought about this. But, when someone only fights to right a wrong, reason is not involved anymore. In reality it’s 2 fights: to the right the wrong, and to get what you want while fighting the 1st fight.
Some people will say that X amount is spent on setting up an address in country that gets retirement payments and this is not fair. Others will say, lose 200 or lose 1’000? I’d say both.
This was an option, but the savings on were so small that cashing out would be the equivalent of 3-5 years of minimum 1st pillar payment. A 1st pillar statement was shown somewhere with 28k-30k francs, don’t remember the minute.
It’s probable that the low 1st pillar contribution was caused by Saisonnierstatut (what curley mentioned earlier) or some creative reporting by the employer.
That opens another can of worms. In this case, the workers allegedly contributed to the system for several years and somehow low savings. What to do with people that don’t contribute directly to the system and still entitled to the minimum payment? And, 13th payment on top of that.