Left job without another one lined up, maybe going self-employed next. What to do with 2nd pillar?

I have quit my job and have no other job lined up. I might end up becoming self-employed or maybe be a Swiss salaried employee again.

Either way, I have received a letter from my last pension fund asking me what to do with my 2nd pillar.

What is the best way to “park” it while I look for another income source and if I don’t know if I’ll be an employee again in CH?

I’d love to cash it out all out and invest it myself, but I doubt that’s possible.

Any advice?

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You need to open a vested benefit account. Best options are Finpension or VIAC. There are other threads on the forum or @thepoorswiss has a post

Once you open the account you need to decide your asset allocation based on your risk appetite

There is also the option to split your pension into 2 separate accounts to have “more flexibility” but not saying any more about that since last time other forum members objected and my post was taken down!

While these are good options for long term investment, investing the whole pillar 2 with a large equity allocation is risky if @boschika may go back to regular employment again relatively soon. The stock market may decline or even crash and when moving back to a regular pension fund at a bad time, you lose out on the recovery phase of the market.

It’s also possible to invest with a low stock allocation with finpension or VIAC but with the current bond market it’s doubtful whether that would yield better returns than a traditional pension fund.

If you actually become self-employed (sole proprietorship), you actually can cash it all out within 12 months of becoming self-employed. There may be certain conditions or caveats. I have no personal experience.

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You can leave it all “parked” as cash in VIAC.

Not sure this is possible in FP.

Yes, at VIAC that’s possible. However, there is no interest and there is no deposit protection (I think up to 100k are privileged, though). At finpension it’s not possible, as far as I know.

Stiftung Auffangeinrichtung BVG may be better if the money just needs to be parked somewhere for a short while. Or maybe split the money into Auffangeinrichtung and VIAC/finpension, if that’s possible.

Thanks for the answers. I think I’ll just put it all in VIAC; from what I understand making two accounts is only if you’re planning on taking lump sums at age 60 so that you can split withdrawals over two fiscal years and lower your taxes.

Split it up. 50% to Viac and 50% to ValuePension.

But why? What’s the point of splitting it?

Gives you options, you can always merge it, but won’t be able to split it another time.

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There are purely hypothetical options nobody dares to mention, discussed in the media and also this forum. Of course, nobody would advise to go for such options, it’s discussed purely for educational purposes.

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I agree. Not necessarily a bad idea, but risky. Especially in the current climate of tanking stock prices and foreseeable raises of interest rates by central banks (yes, it’s market timing. Then again, do you want to risk it based on the current environment).

Eggs in different baskets.

If one foundation goes belly up or proves to be a fraud…

I recommend parking it in 2 regular vested benefits accounts initially until you know what will happen next. The reason is that investments in the stock market can lose value over the short term. If you end up getting another job and have to subscribe to a new pension fund, you may be forced to sell out your investments at a bad time.

Once you are sure that you will hold your vested benefits long-term (e.g. if you leave Switzerland and cannot/do not cash out), then it makes a lot of sense to invest them (with Viac or finpension, for example).

Having your benefits in 2 accounts gives you more options when it comes to cashing out or transferring, and is also more secure, as San-Francisco mentioned.

You can compare vested benefits accounts here:

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