Vested benefits account / vested benefits portfolio

A vested benefits account is a special pension account in Switzerland for second pillar (BVG) assets. It is opened when pension fund assets cannot be transferred immediately to a new pension fund, for example when changing jobs, during a period of unemployment, when self-employed, or when living abroad. The money remains tax-privileged and continues to grow with interest. It may only be withdrawn upon retirement or definitive withdrawal from the mandatory pension plan (usually from the age of 58/59). There are pure accounts (at a bank with interest) and investment solutions. In the latter case, this is referred to as a vested benefits portfolio.