Understanding vested benefits

With a vested benefits account, the 2nd pillar assets you’ve accumulated to date remain safe until you know what to do with them. Better still, you can even make them grow.

The 3 pillar rule.
In Switzerland, pension provision is based on three pillars. The 1st pillar (AVS/AI) is compulsory and covers basic needs. The 2nd pillar (LPP) is the occupational savings scheme, which is also compulsory for employees. The contributions are deducted directly from your salary and enable you to receive a supplementary pension when you retire. Lastly, the 3rd pillar is a voluntary personal pension plan that enables you to top up your cover depending on your needs.

Vested benefits are your safety net between jobs.
When you leave a job, your 2nd pillar assets don’t necessarily follow you. To protect them, you can transfer them to a vested benefits account where they can grow while you determine your next steps.

Good to know.
Your vested benefits remain locked until you either take up employment subject to BVG/LPP or meet specific qualifying conditions (such as permanently leaving Switzerland, purchasing property, etc.).

To invest... or not.
Any assets you transfer to your vested benefits account can be kept as simple savings if you prefer. However, depending on your circumstances and investment timeline, you can maximise your long-term earning potential by choosing an investment strategy that aligns perfectly with your profile and objectives.

Take control of your 2nd pillar assets. With Pilla, you can secure them and put them to work. So, shall we get started?