Occupational Pension Buy-in: Who Qualifies and What You Get
Learn how an occupational pension buy-in works to increase your retirement capital and the rules regarding fund withdrawals.
An occupational pension buy-in allows you to make additional contributions to your pension fund to boost your future retirement savings.
Who it's for
This option is available to individuals who are members of a pension fund. This includes both employees and freelancers who fall under the relevant pension structures in Switzerland.
What you get
The primary benefit of this scheme is an increase in your retirement capital. By making these additional payments, you build up a larger pool of funds within your pension account, which is designed to provide you with more financial security once you reach retirement age.
What it costs you
Participating in a buy-in requires you to use your own personal funds to make these extra payments into your pension account. You should review your available finances to determine how much you can contribute to the fund.
The catch to know
It is important to understand the restriction on accessing these funds. If you choose to withdraw the capital that was provided through a buy-in, you will be prohibited from making another withdrawal for a period of 3 years. This means your money is committed to the fund for that duration.
How to apply
- Contact your specific pension fund to discuss your eligibility and the current status of your account.
- Request a formal calculation from the fund to determine the specific amount you are allowed to contribute through a buy-in.
- Coordinate with the fund to arrange the transfer of your funds into the pension account.