Dear All
Last May I lost my job. I’ve been on RAV since then, with my entitlement running up until May 2027. I’ve been a resident since 2015, and I am on a C permit (issued last year just before my job finished) and live in Zurich.
I’ve tried hard to find employment here in Zurich, but the reality is my German is not good enough, my UK qualifications are not formally recognised here, and on top of that I am 58. There is a possibility I could start my own business here in my field, but really I think it’s time to get back home to the UK. We have a nice little property in Kent.
We’d love to stay here but I can only see us burning through our savings, unless I take an unskilled job outside of my profession. We probably have enough assets to live a modest but comfortable life in the UK without the pressure to work.
I wonder if anyone can recommend a decent financial advisor who can help me make the best decisions regarding my pension pots and tax.
We have a Pillar 2 pot with Frankly - I believe (but am not certain) that they are Zurich based so probably higher withholding tax. I’m not sure if we are able to claim back this withholding tax or not when we return.
We have a 3a pot with Postfinance - my understanding is this is much more straightforward.
Any recommendations for an advisor, or advice about the pensions, or about the topic in general, would be greatly appreciated.
Thank you in advance
Hello
Unless you have a very convoluted asset situation, you probably don’t need a financial advisor. Just check how the pillar 2 & 3 withdrawals are taxed in the UK. Google gives me:
UK Tax Rate: 0%. Under Article 18(2) of the UK-Switzerland Double Taxation Agreement, lump-sum pension payouts are taxed exclusively by Switzerland. The UK will not tax this withdrawal, though you must still report it to HMRC.*
This is AI though, so just check. Zurich is not optimal for withdrawal taxes, but nothing you can change on a whim - so I wouldn’t worry. You may also only be able to withdraw the over mandatory part of your 2nd pillar.
As for other assets, sell, transfer money to UK and buy again, as Switzerland has no capital gains taxes for individuals.
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Addendum: Idk if this is allowed, but if you need help, I can assist you here as well. I’m very familiar with the Swiss side of personal finance, including pensions, 2nd and 3rd pillar etc.
And I’m much cheaper than a financial advisor 
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Lump sum withdrawals of pension and 3a after you moved abroad are taxed by the canton of the holding entity. Schwyz generally has the lowest tax rate (IIRC except for small amounts) on these payouts, to use that you transfer your assets there.
Postfinance has its seat in Bern, finpension in Schwyz. Not sure about VIAC. The latter two are generally recommended due to their low management fees of ~0.5%.
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Yeah, but moving the assets there, just to withdraw them usually comes with a lot of fees. Depending on how big the amounts are, this might not be worth it. OP needs to check this.
As for the other points, you’re right. He won’t be able to withdraw them inside Switzerland, that’s why he needs to check the UK tax treatment of foreign lump sum pensions.
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Nope, it’s something like 500.-
That’s nothing compared to the amounts at hand, and on top of that they only levy that during the first 6 months after transfer.
Off the top of my head, whoever’s interested will want to consult the T&C to be sure.
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Best avoided, because you have already made two fundamental mistakes.