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.
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.
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.
As part of one of the world's best pension systems, the Swiss state scheme is also known as the first pillar. In conjunction with this retirement provision that covers basic needs, company pensions form the second pillar. Together, the two sources of income aim to help retirees maintain their standard of living during retirement. An optional top up is available using the third pillar that comprises local Swiss products, such as those offered by leading Swiss pension plan providers.
In recent years, the pensions and financial services market has undergone considerable growth, with some exciting new investment options. At the same time, making provisions for our later years has become increasingly important.