Vested benefits account

Q: How can I save on taxes by saving for retirement?

Your retirement savings are exempt from wealth tax for the duration of the term. The interest earned is tax-exempt until withdrawal. When your retirement savings are paid out, they will be taxed separately from other income at a reduced rate.

Q: Add investment option into your vested benefit asset

Please note: To activate the investment plan or make one-time investments you require a vested benefits account and an up-to-date risk notice.

The vested benefits account at a glance

Tax-free safekeeping

Assets, interest and capital earnings are tax-exempt until withdrawal.

Park your money safely

Should you take a career break, change jobs or move abroad.

Higher potential returns

Invest your retirement savings with no minimum deposit.

High security for your capital

When you stop working in Switzerland or take a career break, the savings in your occupational pension plan cannot be transferred to a new pension fund. However, neither can they stay with your previous pension fund. Your pillar 2 assets are parked safely in a vested benefits account.

Higher potential returns with UBS Vitainvest Investment Funds
Monies from pillar 2 can be used to finance owner-occupied property
Account maintenance fees of just CHF 3 a month (first two months free of charge), interest credited annually, no notice periods

Factsheet vested benefits account

Invest with our investment plan

By investing your capital in Vitainvest sustainable investment funds, you benefit from higher potential earnings in the long run compared with a vested benefits account. You can invest all of the money at once or in stages, depending on your risk capacity and risk tolerance.

Free custody account management
No minimum deposit required
Invest in one or several investment funds

Overview of Vitainvest sustainable investment funds

Open a vested benefit account in three steps

01
Download the PDF form
Open the form by clicking “Download form now.”
02
Fill out the opening form
Send the completed and signed form to your existing vested benefits foundation or pension fund.
03
Use the account
Your pension fund or vested benefits foundation will prepare a termination settlement and transfer your assets to the UBS vested benefits foundation.*

* You will receive a letter with your account number to confirm that the payment has been received.

Download form now

Add investment option into your vested benefit asset

Please note: To activate the investment plan or make one-time investments you require a vested benefits account and an up-to-date risk notice. (PDF, 315 KB)

04
Download the form
Decide whether to make a one-time investment or invest stagger with the investment plan.
05
Set the amount
Determine the amount you want to invest and send the signed form to the vested benefits foundation.
06
Start investing
We’ll notify you as soon as we receive the form and confirm your order.

To the investment plan

Make a one-time investment

FAQ

When do I need a vested benefits account?

When you take a break from employment or become self-employed, you will no longer be a member of a pension fund. To keep your retirement savings, the pension fund of your last employer will transfer the money to an account in a vested benefits foundation. And so your pillar 2 assets are deposited – for example

during parental leave;
during vocational training;
when you switch to a job abroad;
during a sabbatical;
for a longer trip;
during unemployment.

Once you return to employment, have the savings from your vested benefits account transferred to your new pension fund.

Good to know: You can freely choose which foundation should hold your vested benefits account – that means that you can also switch from another vested benefits foundation to UBS.

How can I save on taxes by saving for retirement?

How can I finance a home using the savings on my vested benefits account?

If you move into the house or apartment yourself, you can use the savings in your vested benefits account for the financing. Early withdrawal is possible every five years and without a minimum requirement. The withdrawn amount can be paid back into pillar 2 at any time. Alternatively, it is also possible to pledge the funds.

The savings can then be used for building, buying or renovating real estate as well as for some forms of participation (e.g. housing cooperatives, tenant public limited companies). You can also use it to amortize mortgage loans.

Good to know: The financing of vacation houses, vacation apartments or secondary residences with savings from pillar 2 is not allowed.

When is early withdrawal possible?

You can withdraw your savings no earlier than five years before reaching the statutory AHV retirement age.

Early withdrawal is possible if

you want to use your retirement savings to finance your own home (possible every 5 years);
you leave Switzerland permanently (restrictions apply in EU countries, Liechtenstein, Iceland and Norway);
you become self-employed;
you receive a full invalidity pension;
your vested benefits account has a lower balance than your current annual contribution to your occupational pension plan.

If the pension fund member dies, payment is made to the beneficiaries.

Can I also invest the money I have parked in the vested benefits account?

The UBS Vested Benefits Custody Account is the ideal complement to the vested benefits account. By investing your pension fund money in Vitainvest investment funds, you benefit from higher earnings potential in the long run. With the detailed annual wealth disclosure, you can keep an overview over your retirement savings.

Free choice between different Vitainvest investment funds
Your fund shares will be kept safe in the vested benefits custody account. You are free to decide how much you want to invest in one or several of the eleven Vitainvest investment funds. With an investment plan UBS Vested Benefits Account, you can regularly invest a fixed amount from your UBS Vested Benefits Account in UBS Vitainvest Investment Funds.

Good to know: Fund shares in pillar 2 normally have to be sold as soon as you’ve reached AHV retirement age. This is not the case with Vitainvest investment funds. You can transfer these into your free assets when you retire. This way you remain flexible in terms of when to sell the shares later.

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