Originally, I planned to transfer my freizügigkeits funds to VIAC, indeed. But after getting more and more info to valuepension (VP), I probably will reconsider my plans. I mean, as far as I know this is the first 401k-like opportunity in Switzerland - and I am a huge fan of this system, if I may be honest.
I can imagine transferring my 3a funds to VP as well, if they are in time with their schedule. VIAC does a fantastic job, don’t get me wrong. But at the moment I see more benefits at VP, e.g. the withholding tax topic if you are leaving Switzerland with withholding tax in Schwyz, SZ instead of Basel, BS.
I don’t use the Viac app very often. It’s more userfriendly in the browser anyway. Set it and forget it. It’s not like IBKR where you need to login to make a purchase.
There are factors that are way more important. No restrictions on fund/currency exposure, low fees, no hidden FX fees, tax-optimization (Schwyz), customizable rebalancing settings, option to add other index funds on request and things like that.
0.75% but they claim that it’s currently around 0.50% (because of pooling/netting). I know it’s not much, but it might still compound due to the monthly rebalancing and low rebalancing bands. Still, it’s a matter of principle. Why is VIAC chosing non CHF funds when there is a CHF option like VP is doing it?
It’s not greed, it’s only about making earnings (not a bad thing, they have to pay people). Don’t get me wrong. VIAC is currently still the best 3a option, but I would appreciate more transparency.
ValuePension is closer to the ideal solution, but of course not perfect. Competition will lead to much better solutions in the next 2 decades. We might end up with a similiar system like the US. Extremly low cost (0.1% TER) and close to no limitations on funds.
They also offer a pension fund with YourPension, there is a company with 350 employees that is using it. I hope more pension funds will stop using actively managed funds in the future.
You don’t even have to check your 3rd pillar very often. I mean what’s there to see? You just have to look at the SP500 and then you’ll probably know how things are going. You set the allocations, make the standing orders and forget it
As far as I understand it‘s not legal to hide Freizügigkeitskonten from your new pension fund. If anybody will ever find out and if you get fined or forced to transfer is another question.
In good pension funds it’s always related to the salary and not to the capital. So that way young workers or new expats aren’t disadvantaged. So no negative side effect with the right pension fund.
Setting up a system and operating a system shouldn’t be very hard. Not too many actors have had a great interest in doing so, without it being compulsory. And whether or not to make it compulsory is a question of politics - where the mills are grinding rather slowly.
I’ve taken a 10 month paternity leave and kept my pension on a Freizügigkeitskonto during that time. Just talked to the Stiftung Auffangeinrichtung BVG who currently have my money: they have no issue whatsoever in transferring my assets partly to the new employer, partly to any other solution, like Viac or valuepension.ch. Apparently it’s completely up to me.
This is fantastic news for anyone who is seeking to diversify the pension funds and to take more risk. I’m tempted to go 50% to new employer’s PK and 50% to Viac BVG or valuepension with high share in equities.
Are the insurances with your new pension fund related to your salary or the capital?
How many years till you retire?
What’s your overall asset allocation?
Depending on the amount I would go with 50/50 for Viac and VP and transfer nothing at all to the new pension fund.
It seems the insurances are linked to the accumulated capital, but will need to check.
I’m 41, so another 20-25 years until retirement, during which I will contribute to PK in any case.
If I take into account my investments (100% shares), PK, Säule 3a and emergency fund, share of equities drops to roughly 40%. So I can take a lot of risk still.
However, transferring nothing to new employer’s PK seems too risky to me and is likely to raise questions also with new employer…
If your benefits are on a vested benefits accounts (Freizügigkeitskonto) with them, they will not “split” your money.
…unless in the few exceptional cases that they have to (if your new pension fund has a restriction on the amount of funds that you can transfer into it).
It’s not.
If Auffangeinrichtung by chance acted as your previous employer’s pension fund (i.e., your employer contracted with them for his mandatory pension fund coverage - which, with your paternity leave comment, doesn’t sound like it), they may, upon your termination, split your benefits and transfer to two different vested benefits foundations.
If Auffangeinrichtung acted as your vested benefits institution (in turn having received these funds from your previous employer’s pension fund), they will not split it up further.
Transfer 100% to VIAC or valuepension as long as you don’t have a new pension fund.
Well, that is what they told me on the phone today. I will update you if they accepted the split in the end.
To transfer it again to the new employer after a couple of weeks? What if the assets drop in the meantime and I do not have time to wait for them to recover? Nope, downside potential is way too high!
They must have mixed it up with the rules pertaining to their LOB (pension fund) department, I’m afraid.
In principle, you’d have and take that risk anyway, for the portion that gets transferred to VIAC/valuepension in a split.
By law, you have to do this anyway. For all of your accounts, even after a split.
So if you don’t want to play by the rules - and to be honest, from an economic standpoint I can very well see und understand why - then why split?
As I’ve said before, splitting will increase the chances of your new pension fund “finding out that there must be more” than not having transferred anything (who knows whether you’ve been self-employed in the meantime?). More than anything else, probably.
To get back to the actual topic (for more questions I would suggest opening up a new thread @samuck) investing your 2nd pillar in stocks is only a reasonable thing if you are young and can tolerate the risk.
For me it’s a no-brainer as a 29 year old. If I leave this 18k invested 99% in stocks till I’m 65 and I’ll get 6% return, this will compound to 147k. If I leave it with the pension fund that will probably have a return of 2%, it will compound to 37k. So by just investing this small amount of 2nd pillar money I end up with 110k more close to the withdrawing age.
Yes I was also thinking about that. But you don’t have to change jobs to transfer a FZK to your pension, you can do that at any time. In reality I’ll stop working at least 10 years before the official retirement age. So I’ll end up with no pension fund anyway.
Let’s assume that by 55 I’ll have 1.6 million in IBKR, 0.5 million in my 3rd pillar (divided into 5 accounts) and 0.6 million in my 2nd pillar (divided into 2 accounts). So 2.7 million assets in total of which 1.1 million is tax-free at the moment. Withdrawing 100k/year (3.7% of total assets, 6.3% of IBKR) solely from IBKR should last long enough till I start withdrawing my 3rd pillar at 61-65 and my 2nd pillar at 69-70. In the meantime the AHV will kickin as well. That way I’ll profit from tax-free investments for a large part of my net worth and save a lot of taxes till 70.
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