NEWS

Save on taxes by staggering your pension payout

Those who plan for retirement in a timely manner can save a lot on their taxes upon payout. It is important to arrange for the assets to be paid out over several calendar years.

All assets which accumulate in your pension fund, Pillar 3a account or vested benefits account during your working life must be paid out upon retirement at the latest. 

The examples in the table (link) demonstrate how high the tax savings can be in the various Cantons:

A couple has an account balance of CHF 800,000. If both of them withdraw their assets in the same year, they will pay CHF 50,759 in taxes in the Canton of Zug. If they spread out the payout over several years, they will save CHF 12’891. The savings in the Cantons of Zurich and Schwyz are considerably higher.

Find out about your personal savings options. Cornelia Hager would be glad to assist you if you have any questions.