With the current entrance of VIAC in the market for pillar 2, it‘s time to step back and ask ourselves, whether there are better ways to save our money.
Let me outline my rough idea.
Let your funds grow outside the traditional retirement fund and move your money back to get an annuity.
Transfer pension funds to vested interest account (Freizügigkeitslösung) invested in stocks every time you change jobs to achieve market performance and bring the funds back into your pension fund before retirement age to get a guaranteed pension with higher returns than a typical safe withdrawal rate.
- Let your capital grow outside the normal pension fund restrictions
- Having two accounts lets you spread the market risk of bringing money back to retirement plan
- Vested interest accounts are tax exempt
- You can profit whether you FIRE or not
- No christal ball
- You may not find a job age 64
- Nobody knows what the retirement system will look like in 30+ years
- Best case: Stock market returns during accumulation phase & big guaranteed pension after official retirement age
- Worst case: Market crash when approaching retirement age and not able to find a job
- Do you see legal problems with such an approach?
- Is there big risk besides not being able to predict the future?
IMPORTANT NOTE: This post was not intended to propose any unlawful action. The author explicitly distances himself from such behavior.
Often times, it is a successful strategy look at an idea in an extreme form to uncover blind spots. One major blind spot that has been pointed out by the resourceful members of the forum is, that you must transfer your capital from a vested benefits account into your pension fund if you start a regular job again where you contribute to a pension fund. Thank you for stating this clearly.
For me, the discussion has been very valuable since it means conversely, that someone who FIREd and has his money in a vested benefits account has to take into account that he must transfer his money back to a pension fund if he rejoins the workforce in future.