Switzerland is considered a tax haven by many because their taxes are lower than average. The taxation system is complex without being confusing, and pensioners benefit rather well from the Swiss 3-Pillar pension scheme, as well as from other low/non-applicable taxes. If you are looking to retire in Switzerland, then investing in pensions is a very good idea. In this article, you will discover how you may fully benefit from the Swiss tax and pension system.
Swiss pillar 3a is a category of private retirement savings with a tax privilege. Your contributions are tax deductible, and a 3a Pillar Swiss pension scheme has the most tax benefits compared with other retirement schemes. The reason for this is because it is very difficult to remove your money from your 3A savings, whereas it is slightly easier to remove money from things such as your 3b pillar plan.
In today’s unpredictable world, making sure your retirement income matches your lifestyle plans is of paramount importance. From 1970 to the present day, the average lifespan in the UK has increased nearly ten years, to just under 81 years of age. With improved health care, people are also more physically active in their senior years than they were 50 years ago. Having worked hard for 50 plus years, it makes good sense to analyse your financial planning to ensure your pension income can provide for everything you’ve promised yourself. After all, age is but a number. Here are seven ideas worth considering to help make your pension more secure.
It is assumed by many successful business owners and corporate high-flyers that they have little to be concerned about when it comes to financial planning for retirement. Pension plans have been put in place that should, according to projections, provide a retiring income commensurate with final salaries. With large financial commitments such as mortgages paid off, the assumption is that they will have greater disposable income to enjoy. The truth though, according to research carried out by HM Treasury, is that only 22% of soon to be retirees have any real idea of the value of their pension pots.
A self-invested personal pension (or a SIPP for ease) is a scheme that takes full advantage of the new pension freedoms in the UK. It’s a scheme that provides flexibility in regards to what you can do with your investments, and as such, is a great option for those who don’t want to succumb to the rigidity of traditional scenes that limit you to buying a fixed income with your pension pot.
1. SIPPs are incredibly tax-efficient
When investing through a company pension scheme, your contributions are made prior to your income being taxed. However, with a SIPP your contributions will be made after your income has been taxed. The SIPP provider will automatically claim the basic rate of 20% and add it to your pension pot. This means that if you contribute £80 into your SIPP, a total of £100 will be invested.
Here, we review Qualifying Recognised Overseas Pension Schemes, a flexible type of retirement savings plan that offers advantages to British expats. If you are a pension investor based in mainland Europe, especially Switzerland, Denmark, Sweden, the Netherlands, and France, read on to discover the benefits that an overseas pension could provide.
If you are one of the numerous British expats who live and work in Switzerland, you may well want to know how company pension plans operate. Here, we outline occupational retirement savings schemes, known as the second pillar of Swiss pensions.
If you are one of the many expats who live and work in Switzerland, you may have wondered about boosting your savings for retirement. Using the optional third pillar of the Swiss system offers various advantages to pension savers. In this post, we introduce the third pillar of the Swiss scheme, discuss the benefits of participating and review how it works with the first and second pillars.