Voluntary repayment into second pillar


This is an option I’m considering this year (I was foolish not to read into it last year). Is this something you recommend? If so, what percentage annually? Are the tax benefits really that good?

Hi. This looks like a duplicate of a fairly fresh topic.

since that other thread went another direction, ill post here:
there is a yearly and an absolute limit to these voluntary contributions, but don’t ask me numbers^^
the common rationale is to wait until rather late in your life when you have a high salary and high tax bracket, because then you save most taxes with it.

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Nugget made a point. You may avoid to fill your contribution gap too early in your life because your tax bracket is quite low compared to the one you will have in a few years, Moreover, if you want to take advantage of your contribution gap, make sure to plan the repayments on a few years. Tax brackets are progressive, breaking the progression on several years leads to higher tax benefits :slight_smile:

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haha lets go fancy now. later gap filling usually results in higher tax advantage (due to higher tax bracket) but waiting comes with opportunity cost!
muhaha someone should calculate this, i never saw any of the tax advisors point this out! it bight be better in the end to invest into the world portfolio instead^^

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The conversation in that thread has gone in another direction.

Thank you ever so much. I don’t suppose you have the breakdown of this? I’d be interested to read the info (English or French).

My canton’s tax guide is quite in depth but it seems to skim over this topic :face_with_raised_eyebrow: