Changing Jobs: What Happens to Your Pension Fund Savings
Vested benefits, the transfer to your new fund and what to do in a gap between jobs.
5 min read · Retirement & Pensions
When you leave an employer, your pension fund savings do not disappear. They are called vested benefits (Freizügigkeitsleistung) and follow you to the next job.
Transfer to the new fund
If you start a new job, your old fund transfers the money directly to the new fund. Tell both funds in time and ask your new fund whether you may also buy in with the transferred money to close any gap. Check the new fund's rules, because benefits and contributions can differ widely.
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Between two jobs
If you have no new employer yet, the money goes to a vested benefits account at a bank or foundation. You choose the provider; if you do not, the fund sends it to the substitute occupational benefit foundation. Compare interest rates and fees, and consider securities-based options if the horizon is long.
When a cash payout is possible
- You leave Switzerland permanently (limits apply for EU/EFTA destinations for the mandatory part).
- You become self-employed and no longer belong to a pension fund.
- The amount is lower than your own yearly contributions.
Married people need the spouse's written consent for a cash payout.
Good habits
- Never leave an old account forgotten: keep a list of all accounts and ask the central office for forgotten assets if needed.
- Do not withdraw early for convenience; the money is taxed and your retirement income drops.
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