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When you get older, many things are new. You drive a car, you have a say in politics, you go on trips. But almost no one thinks about retirement planning. If you start thinking about the time after your working life early, many things will become easier as you get older. The following checklist can save you from unpleasant moments in retirement.
From age 18
one
Check regularly for AHV clearance
Only those who have paid their AHV contributions in full receive their full pension. For each year that contributions are missing, the pension is reduced by just over 2 percent. If a deficit is detected, it is possible to repay this deficit within five years from the calendar year in which it is owed. You can order a free account statement from the cantonal compensation office, which you can use to detect any gaps.
2
Buy into a retirement fund
In case of gaps in coverage, recruitment to the pension fund (PK) is possible. This increases your future pension and saves taxes. Gaps arise if you have worked abroad or your salary has increased significantly (see below for more information on purchasing a PK).
3
Avoid underfunded pension funds
If there is a change of employer, it is useful to look at the status of the “new” retirement fund. If the coverage rate is significantly below 100 percent, you run the risk of a reduced interest rate on your retirement savings or even a reduction in benefits; This negatively affects your future pension. Some of the money paid into the second pillar would later disappear.
4
Open a 3a account and make annual payments
Pillar 3a is a good alternative to joining a pension fund. There is no risk of loss due to underfunding of the pension fund. The amount paid can be deducted from your income on your tax return. Interest income from Pillar 3a assets is also tax-free. There are 3 shared and non-shared accounts.
From age 50 to retirement
one
Calculate income and expenses before and after retirement
As you approach retirement, it’s worth taking a closer look at your own financial situation. The structure of income and expenses will change as a result of retirement. A budget plan helps optimize estate planning. It may be helpful to consult an independent financial planner for an overview.
2
Recent purchases in the second column
Retirement is not far away. It’s still a matter of fine tuning. Are there still gaps in the retirement fund? In particular, withdrawals from the retirement fund through the purchase of a home often create a gap in retirement savings. But be careful with last-minute purchases: If you want to withdraw pension fund money as capital after retirement, you are not allowed to make any purchases in the last three years before retirement. The loan is considered “blocked” for three years. So pay early.
3
Clarify life situation
Flat expenses make up a large part of the budget. You often face the question of whether you should keep your own home after retirement or move to a smaller apartment after your working life. With the sale of your home, your liquid assets increase and long-held desires such as traveling can be fulfilled.
4
Determine the reference date for column 3a
The pension capital in the second and third columns paid in the same year is added together. Payments made in stages over several years provide significant tax savings. You can only have the Pillar 3a account paid in full. It is recommended that two or more different Pillar 3a accounts be established over time and that the account balances are kept as similar as possible.
5
Withdrawal of capital or retirement payment from the second column
The second column represents the largest asset item for most Swiss people. There are three options for withdrawal from the date of retirement: payment as a lifetime pension, a one-off lump sum withdrawal, or a mixture of lump sum withdrawal and pension. Which option is most appropriate depends on the individual situation. However, in general, taking out a pension is considered the safest option because you have a regular source of income for the rest of your life.
6
Apply for AHV pension
The pension from the first column is not automatically transferred to the account at the time of retirement (unlike the second column). You must request this from the AHV compensation office three to four months before your desired retirement date.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
