Pension planning is often taken seriously too late, even though it is advisable to take care of it early enough. Especially when it comes to taxes. Our recommendation is to plan your pension from the age of 50 onwards.
In particular, pension funds and pillar 3a have attractive offers for pension planning, which can also have a positive effect on your tax bill. The closer the retirement, the more payments are to be made in the pension funds. Those payments are fully deductible in your tax calculation, and this can be quite profitable as it is obvious from the example given below:
You have a taxable net income of CHF 100000 and live in the city of Zurich. If you make a deposit of CHF 10000 to the pension fund now, your tax bill will be approx. 3350 Swiss francs lower. In addition, you will get the money back very soon if you deposit it not long until the retirement.
But watch out! You should remember these two points:
- If you opt for early withdrawal of principal amount from the pension fund before your retirement, then the following restriction applies: Money has to stay deposited in your pension fund for at least three years before you can make early withdrawal. If you draw money from the pension fund as a pension, this restriction does not apply.
- If you receive money from the pension fund or pillar 3a – whether as a principal amount or as a pension – the corresponding amount will be taxed at a reduced tax rate. However, from the point of view of taxation, it is advisable to distribute the pension funds over several years.
You can profit
Steuerzentrum can provide you with your individual pension plan. We will advise you on all tax and financial matters, so that you have your tax credits and disbursements optimally coordinated. Thus we help you keep your expenses as low as possible and you will have more money and therefore more security after your retirement.