Hi All,
I wanted to ask the best person/organization to help me calculate the gap(s) in my BVG and 3rd pillar - accountant? tax authority? a financial institution where I have the account(s)? employer? otherwise?
Additionally, can I open bvg and 3rd pillar accounts in a a different kanton from where I live in?
Guidance on what paperwork is necessary for this calculation would also be highly appreciated?
Many TIA!
You can open pillar 3 accounts anywhere in Switzerland.
With BVG, do you mean pillar 2 or pillar 1? For pillar 2 you can contact your company provider.
@OakbrookIL : thank you.
for the sake of completeness, pillars 1, 2 and 3 …
Pillar 1 you can check online what is missing.
I checked the report for my pillar 2 and it shows the amount I can still pay in.
Pilliar 1 you cannot normally add past years.
Pillar 3 you cannot add past years pre 2025, but allow the possibility to buy back previous years as long as the missed years are after 2025.
Pillar 2 BVG you misunderstand how it works. You can only have one only Pillar 2, with your employer. Once you move jobs it is all transferred to the new employer. If you are unemployed you must transfer it to a BVG with a bank of your choosing, to hold temporarily until you find a new job and then transfer the lot to the new job. You cannot just open a BVG account yourself if you already have one from your job. When you retire, you receive a pension from the last institution you had. You can buy previous years, including years when you were not in Switzerland. The current (employment) BVF normally includes this info on the annual statement or you can ask them. A rough estimation, to buy 1 year missed is = the amount you pay now per year x 2, as you must pay the employer and employee part. So can be huge, eg if to buy 10 years can easlity be 200k.
All pillar1, pillar 2, pliiar 3 are tax-deductable (though of course pay tax when you cash them as pensions)
i was under the impression that
a) if one came to CH at a later age, they could buy into 2nd and 3rd pillars as if they started working at the age of 18 in CH.
b) possibly buy into 1st pillar for the last 5 years or thereabouts.
hence, my question(s), mostly for tax reduction and deferral reasons.
Correct for Pillar 2, not correct for Pillar 3.
Correct, but if you worked in EU or selected countries (eg USA) then you will be double-paying.
PS: Note that if you pay into Pillar 2, you are blocked for 3 years from making withdrawals for house-purchases (if relevant for you).
For pillar 2, you’ll be able to contribute only a small amount within the first 5 years in Switzerland (otherwise short term workers would commonly avoid Swiss tax system by paying everything into pillar 2 to take it out in 1-5 years at low preferential scale).
I always wondered why there was a limit in the first 5 years. It makes sense now.