Lump-sum withdrawal

In the second pillar (BVG), a lump-sum withdrawal refers to the one-time payment of accumulated pension capital instead of a lifetime annuity. In Switzerland, insured individuals can generally choose upon retirement whether they wish to withdraw all or part of their occupational pension savings. Other reasons for an early withdrawal include purchasing a home, starting a self-employed business, or permanently emigrating. The amount is taxed separately from other income at a reduced rate, known as the capital gains tax. While the lump-sum withdrawal offers flexibility and the ability to pass on the funds to heirs, it does not include a lifetime pension guarantee. Consequently, the longevity risk and responsibility for asset management are transferred to the individual. With the True Wealth Calculator «Lump-Sum Withdrawal or Annuity?», you can calculate which option is most advantageous for you.