Stability and security are the key characteristics of Switzerland, but foreigners face unique challenges, risks, and even financial gaps when aiming for a resilient future. Here are the 8 crucial steps you need to take to secure your life if you’re new in Switzerland.
Because they have made no payments into the Swiss social security system before, 29% of foreign pensioners in Switzerland are living in poverty. Your own risk will increase the longer you wait to take action. Luckily, there are two ways to close your pension gap while also saving on taxes: Retroactive pension payments and more importantly, the pillar 3a.
Retroactive pension payments
To boost the pension you receive in retirement, you can choose to retroactively pay into pillars 1 and 2 of the Swiss social security system (1st pillar = AHV, 2nd pillar = occupational pension). These payments are fully tax-deductible. However, many conditions apply – for example, you can only retroactively pay for pension gaps of the last five years.
Tax-saving pillar 3a plan
A pillar 3a plan is a private pension account that you pay into at your own pace. It closes the gaps left by the 1st and 2nd pillar (bare minimum required to live) and lets you keep your accustomed standard of living in retirement.
Your long-term benefits with a pillar 3a plan:
70% of Swiss households are already secured with a pillar 3a plan, for good reason. If you too are looking to take this crucial step towards a safe future, contact Expat Services Switzerland today for personal consultation.
Consult me for a pillar 3a plan!The fact is that your basic health insurance will only cover the bare minimum of necessary services, which will leave you with significant bills in the event of an actual emergency.
To protect your health & budget in the long-term, you need to conclude a supplementary health insurance solution. These are generally affordable, greatly expand your coverage, and are tailored specifically to your needs.
Your long-term benefits with supplementary health insurance:
How to proceed:
Deductions in the Swiss tax system mainly focus on long-term planning. There are considerable benefits all relating to major life milestones. Just some of the possible deductions are:
However, the Swiss tax system is a complex beast that requires specific insider knowledge. To maximize your long-term tax benefits, consider working with experienced escrow accountants who can fully support you on a personal level.
Benefits of professional tax support:
Our inhouse partner Zürcher Treuhand GmbH is here to take care of expats in Switzerland. Our personal consultation is tailored to the needs of expats & ANobAG.
Consult me on my taxes!There are numerous forward-thinking insurance/pension packages at your disposal, related to family protection, livelihood, and worst-case scenarios.
Child saving plan
We all want to give our children a great start into adulthood. To secure the capital for that first apartment, their education, or a language stay, it is more important than ever to start planning early. The child saving plan insurance is a flexible solution that invests your savings into protects your children in case of illness and accident.
Life insurance
Anyone who has a family also bears a special responsibility for their financial security in case of a sudden death. With the help of life insurance, you can protect yourself and your family against financial insolvency. The payment period in case of death can be chosen by you according to the needs of your relatives. In case of disability, you will be exempt from insurance payments. You can also profit from the tax benefits within the scope of the pillar 3a.
Disability pension
If you lose your regular monthly income due to a critical injury or illness, disability pension will let you receive most of your usual salary, in accordance with your inability to work.
Disability pension allows you to keep your standard of living, as the IV (the national disability insurance) often covers less than the bare minimum needed to live.
Expat Services Switzerland is here to help you navigate your options & secure your family’s future. Contact us now for a personal consultation!
I want to protect myself & my family!Swiss people aren’t unfriendly to newcomers, but they can be a bit reserved. Breaking into Swiss social circles is therefore often a multi-year project. To properly settle in & integrate, follow these steps:
For your convenience, we have put together a few articles that will help you learn more about the Swiss way of life.
Switzerland is a nation that welcomes highly educated expats in specialized professions. Part of your long-term strategy therefore needs to be developing your skill set and your career. This will open up better job opportunities, which in turn will help you combat the rising costs of living and higher social security contributions.
Remember: As you age, the percentage of these obligatory payments increases, which can cut down your expendable income in the years before your retirement.
Switzerland boasts some of the world’s leading international schools & technical universities, which is great for expats looking to expand their capabilities. Even better: with its entrepreneur-friendly regulations, Switzerland is the perfect place to start your own business. Our experienced accountants are happy to support you in forming your own company.
I want to start a business in Switzerland!For most people, Switzerland is a renter’s market – 65% of citizens don’t own the home they live in, which is unusually high in Europe. Because of the soaring property costs, a mortgage is certainly necessary to own your dream house or apartment.
Once you’ve settled in and have carefully considered your real estate needs, Expat Services Switzerland can connect you with our mortgage partners for the best conditions.
I'm interested in a mortgage!Becoming a fully naturalized Swiss citizen is the crowning achievement of your time living as an expat, being the one step above the C level permit. Becoming a citizen will allow you to vote in elections and grant you the Swiss passport.
Be aware that the path to citizenship isn’t easy: There are many requirements related to your language skills & how well you’ve integrated into the country. The entire process can take years and comes with significant costs and endless paperwork. Having Swiss roots or being married to a Swiss spouse can help your chances of being approved.
To get started, you need to contact the migration authorities of your canton and request the naturalization application form.
We hope that these 8 steps guide you towards a safer future for your new life in Switzerland. If you have any questions, please do not hesitate to contact us. Expat Services Switzerland is your personal consultant for all matters of insurance, pension, and tax.
Switzerland is renowned for its comprehensive solidarity system, which impacts various aspects of life, including retirement. This guide will help you understand and take actionable steps to manage and plan your retirement in Switzerland effectively, ensuring you secure your future and maintain your standard of living.
In this article, we would like to talk about the two types of 3rd pillar, its advantages and how we can help you with finding your personal pension strategy.
For personal retirement planning and family welfare, Switzerland has established a 3-pillar system since 1972. The first and second pillars together cover only about 60-70% of the last income before retirement. In this article you will find all the important information about the two types of third pillar.
