Some thoughts about transferring your 2nd pillar money. I don’t go into cashing it out early.
If you leave your job, you have to tell your PK where they should transfer your money. You have the choice to transfer it to the new employer’s PK or to a Freizügigkeitskonto. When you do not start to work directly, you will probably transfer it to a Freizügigkeiskonto anyway.
Doing some quick research, I fond out the following:
- You can split the money and transfer it to two independent institutions (protection against default of the institution).
- If you cash out the money later, it is taxed progressively. You have to cash out the whole account but at once. If you have two accounts, you can cash them out in different years to reduce the tax burden.
- If you do not plan to cash out your capital in the next years, you may want to invest it in a BVG conform fund. Example: The Swisscanto BVG 3 Index 45 R gives you a 45% stocks exposure for a 0.35% TER.
- When reaching the relevant age (retirement -5 years) Freizügigkeitskonto can only be cashed out and does not allow for annuity payments.