I’m going to leave Switzerland, what should I do with my Swiss 2nd Pillar (LPP)?

It has been mentioned several times in many articles about the second pillar that the Swiss occupational pension plan (LPP) is an integral part of the Swiss social security system and will fill in the gaps of the 1st pillar AVS at your retirement.

Many questions arise concerning this 2nd pillar, from LPP contributions to the critical question of what happens to the Swiss LPP when leaving Switzerland.

Various reasons can lead employees to leave Switzerland. Of course, this change typically raises the same question: what about the occupational pension plan LPP?

Should one be concerned about the conditions for withdrawing retirement assets? How can taxes on LPP assets be minimized? The payment of the 2nd pillar through a vested benefits account depends on the agreement between Switzerland and the new target country: it’s not your nationality that determines the nature of the payment, but the law of your new country of residence.

Therefore, it’s essential to clarify the points of friction related to the payment of LPP assets or savings in vested benefits accounts.



Upon withdrawal of the 2nd pillar vested benefits, the amount is subject to tax on vested benefits assets (this tax is calculated separately from income tax).

If your new country of residence does not have any agreement or if its agreement does not account for the 2nd pillar vested benefits, then the tax to be paid will be collected by the Foundation in Switzerland. This will be based on the tax scale of your canton, which can vary significantly depending on location. As legislation varies by canton, there’s a potential for optimization.

Because what’s crucial to understand is that upon leaving Switzerland, it’s the vested benefits foundation that will collect the tax and remit it to your canton. This tax amount isn’t determined by the applicant’s last place of residence but rather by the location of the headquarters of the last pension fund or vested benefits foundation where the assets were entrusted.

For example, the Canton of Schwyz offers a very low withholding tax compared to other Swiss cantons. Consequently, an increasing number of residents wishing to leave Switzerland entrust their pension assets to an institution located in the Canton of Schwyz. Given this, and considering the legislation, several pension institutions have chosen to establish themselves in Schwyz. In this array of choices, it’s important to meticulously review the various offers provided by these institutions.

Leaving Switzerland and extra mandatory part from Swiss 2nd Pillar Pension (LPP):

Indeed, when leaving Switzerland, it’s important to consider your Swiss 2nd Pillar Pension (LPP), especially the mandatory and the extra mandatory parts.

  • It’s important to note that if you’re leaving Switzerland for a non-European Union country, you have no issues and can withdraw your entire 2nd pillar without any concerns.
  • If you’re withdrawing your 2nd pillar to leave Switzerland for a European Union member state, you can only withdraw the extra mandatory part, leaving the mandatory part in Switzerland until retirement.

To determine the amount of your extra mandatory part when departing for a European Union country, you can contact us. If you’re interested in a comparison of vested benefits accounts for your mandatory part, feel free to fill out the form at the end of the article.

Swiss 2nd Pillar Pension (LPP): Double Taxation Agreement

In cases where legislation permits you to withdraw your LPP assets, the consideration of the Swiss 2nd pillar LPP by your new country of residence will determine the degree of taxation on your assets. This taxation can naturally be imposed by the new country of residence. In this case, Swiss taxation will refund you the entirety of the tax withheld (at the source).

Switzerland has indeed established over 80 double taxation agreements with various countries worldwide, some of which account for LPP payments. This allows for the reimbursement of LPP tax paid at the Swiss source. Consequently, your LPP assets are impacted by the amount of taxation in the new country of residence, which is typically higher. This specific double taxation legislation concerning the 2nd pillar LPP raises logical questions regarding the withdrawal of the 2nd pillar.

Would you like to learn more about LPP contributions and how to optimize your capital in the 2nd pillar or your vested benefits account?

This form will directly connect you with a LPP professional.

comparatif des comptes de libre passage

How to invest your Swiss 2nd Pillar Pension (LPP) before leaving Switzerland?

If your situation doesn’t allow you to withdraw your LPP assets, you will also need to transfer the funds to a vested benefits account.

Your pension fund will specifically request details of your account. You’ll have the opportunity to conduct a comparison of vested benefits accounts. In this process, several variables need to be carefully considered:

  • Amount of LPP Capital: Based on the amount involved, it’s recommended to open a single account instead of two to optimize your assets as much as possible.
  • LPP Interest Rate: The conditions here depend on the payment amount, so it should be clearly defined with your funds beforehand. This allows you to use the proposed interest rate to compare different offers.
  • Location of the Accumulated Interest Account: The canton where your Swiss LPP is located matters. As previously mentioned, depending on your residence canton, destination country, these factors become important when leaving Switzerland and your LPP.

As mentioned above, taxes are based on the laws related to the state of your accumulated interest account, making precise research very important.


Leaving Switzerland, Swiss 2nd Pillar Pension (LPP) as a Cross-Border worker:

There are no less than 100,000 cross-border workers in French-speaking Switzerland in 2021.

They are an integral part of Switzerland’s workforce, and just like every Swiss worker, they contribute to the 2nd Pillar Pension (LPP).

So, what are the implications for a cross-border worker if they leave Switzerland and want to withdraw their 2nd pillar?

In reality, the conditions for withdrawing the 2nd pillar for a cross-border worker are exactly the same:

  • If they leave Switzerland for France, they can only retrieve the extra mandatory part before retirement.
  • If a cross-border worker leaves Switzerland for a non-European Union country, they can withdraw the entire LPP (2nd pillar in Switzerland).

Leaving Switzerland, Swiss 2nd Pillar Pension (LPP), and Retirement:

When one decides to leave Switzerland, they often consider withdrawing their 2nd pillar LPP, but is this really the right solution?

It’s important to compare vested benefits accounts, as the LPP contributions accumulated during your career could allow you to have a more comfortable retirement by leaving this 2nd pillar in Switzerland:

  • Swiss vested benefits foundations are highly regulated in the legal domain.
  • Returns of 3 to 5% depending on investment strategies.
  • Attractive taxation until the withdrawal of 2nd pillar assets.
  • Opportunities for optimizing taxes on the withdrawal of 2nd pillar assets.

To receive assistance with the procedures for leaving Switzerland regarding the 2nd pillar, don’t hesitate to fill out the form below. An expert in the 2nd pillar will contact you within 24 hours.



Vested benefits comparison : How to find the best account !

Vested benefits comparison : How to find the best account !



You have just received a letter from your former pension fund asking you to transfer your vested benefits? You don’t know how to open your vested benefits account? You’re unsure where to transfer your vested benefits?

Here are the 3 important tips to find the best vested benefits account in 2024 :

What is a vested benefits account?

It can happen that for a Swiss citizen or a cross-border worker, their Swiss pension fund contributions are converted into vested benefits.

Indeed, for various reasons, one may need to open and transfer their vested benefits account:

  • Leaving Switzerland for a permanent departure
  • Becoming self-employed in Switzerland
  • When facing unemployment in Switzerland

All these situations require you to open a vested benefits account and therefore compare vested benefits accounts.

Why compare vested benefits accounts?

Indeed, at Suisse libre Passage, we specialize in comparing vested benefits accounts.

It’s important to be able to choose the most suitable vested benefits solution for your profile in order to select the best vested benefits account.

The key aspects to consider when comparing vested benefits:

  • Interest Rate: A highly crucial factor as it will determine whether you can mitigate the rising cost of inflation each year and especially whether your vested benefits account can grow or not.

  • Canton of the Seat of the Vested Benefits Foundation: Another significant consideration, as in the case of a permanent departure from Switzerland and depending on the country, you may have the opportunity to reduce taxation on the withdrawal of capital from your vested benefits account.

  • Account Maintenance Fees: For several years, typically including 2021, foundations have been applying varying degrees of account maintenance fees, generally averaging around 36 Swiss francs per year. This should be taken into account when comparing vested benefits accounts in 2021, as you might occasionally risk losing capital from your vested benefits provision.

How can I verify if my vested benefits foundation has a negative interest rate?

It’s always important to look at the interest rate of vested benefits accounts when conducting a comparison.

Negative interest rates do not exist in Swiss vested benefits accounts; applying negative interest rates to Swiss pension accounts is prohibited.

However, be sure to carefully examine the various fees, as at certain amounts, you may unfortunately incur a loss of capital in your vested benefits account.

How to study a comparison of vested benefits accounts?

You can do it through your bank, insurance company, or even through the supplementary institutional foundation.

However, there are several aspects to consider in order to find the best vested benefits account:

  • You can utilize our service to create a vested benefits account for you directly through the contact page, free of charge.
  • Decide whether you want to invest your vested benefits account or not.
  • Properly study the different interest rates offered by vested benefits foundations.
  • Take into account any potential fees; generally, vested benefits foundations are very transparent in this regard.

The various vested benefits foundations in Switzerland:

When one wants to manage their different LPP contributions and thereby obtain a comparison of vested benefits accounts, it’s essential to first know the list of various vested benefits foundations in Switzerland.

Here is a list of the main vested benefits foundations in Switzerland:

  • Aargauische Kantonalbank
  • acrevis Bank AG (Rendite) 
  • acrevis Bank AG (avenirplus) 
  • AEK BANK 1826 Genossenschaft (Rendita) 
  • AEK BANK 1826 Genossenschaft (avenirplus) 
  • Alpha RHEINTAL Bank AG (Privor) 
  • Alpha RHEINTAL Bank AG (avenirplus) 
  • Alternative Bank Schweiz AG 
  • Appenzeller Kantonalbank
  • Baloise Bank SoBa AG 
  • Banca dello Stato del Cantone Ticino 
  • Bank BSU Genossenschaft 
  • Bank Cler AG 
  • Bank EEK AG
  • Bank EKI Genossenschaft
  • Bank Gantrisch Genossenschaft
  • Bank in Zuzwil AG
  • Bank Leerau Genossenschaft 
  • Bank Linth LLB AG 
  • Bank Oberaargau AG 
  • Bank SLM AG (Privor)
  • Bank SLM AG (avenirplus)
  • Bank Sparhafen Zürich AG 
  • Bank Thalwil Genossenschaft 
  • Banque Cantonale de Fribourg 
  • Banque Cantonale du Jura SA 
  • Banque Cantonale du Valais 
  • Banque Cantonale Neuchâteloise 
  • Banque Cantonale Vaudoise 
  • Banque Cantonale Vaudoise (avenirplus) 
  • Basellandschaftliche Kantonalbank 
  • Basler Kantonalbank
  • BBO Bank Brienz Oberhasli AG 
  • Berner Kantonalbank AG 
  • Bernerland Bank AG 
  • Bezirks-Sparkasse Dielsdorf Genossenschaft 

The decreasing interest rates of vested benefits accounts?

It’s true that when comparing vested benefits accounts in 2010, the interest rates were significantly higher, and there were plenty of options to choose from.

There are even older vested benefits policies with interest rates of 3% in certain foundations.

Due to varying monetary policies and certain economic crises, the returns and interest rates of vested benefits accounts have been declining year after year.

  • 2011: 2% interest rates on vested benefits accounts
  • 2012: 1.5% interest rates on vested benefits accounts
  • 2021: 0.01% interest rates on vested benefits accounts
  • 2023: 0,2% interest rates on vested benefits accounts

The vested benefits interest rate:

There are many options concerning your vested benefits provision. Indeed, the interest rates for your vested benefits can vary depending on the vested benefits foundations.

Typically, the interest rate for a vested benefits provision is around 0.2%, with varying fees for a non-investment solution. Opting for a vested benefits solution with investments can yield returns averaging around 3% to 5% per year.


The average interest rate of vested benefits accounts in 2023?

Indeed, through various comparisons of vested benefits accounts in Switzerland, one can determine the average interest rate of these accounts.

The average interest rate of vested benefits accounts in Switzerland is approximately 0.2% in 2023.

This is significantly lower than the average returns of vested benefits foundations with investments, which range from 2% to 3% depending on the different vested benefits investment portfolios


A vested benefits account at a bank or an insurance company?

Indeed, when comparing vested benefits accounts, there are various institutions to consider.

So, should you open a vested benefits account with an insurance company or a bank?

Vested benefits account with an insurance company:

  • Provides security against disability or death risks.
  • Interest rates are generally lower.
  • Fees can vary based on the insurance company.

Vested benefits account with a bank:

  • Offers more freedom in account management.
  • You can transfer the account as you wish.
  • Allows for potential investment opportunities.
  • May provide slightly better returns compared to insurance-based accounts.

When do banks update their interest rates on vested benefits accounts?

This can indeed vary for each bank or vested benefits institution.

It’s important to thoroughly check these details when comparing vested benefits accounts.

However, vested benefits foundations usually inform you when there’s a change in interest rates or when they introduce fees.

The investment horizon of your vested benefits account:

Indeed, if you choose an investment solution, you can benefit from market opportunities and achieve returns of around 3% per year.

However, it’s important to consider your investment horizon for your vested benefits provision.

Prefer an investment horizon for your vested benefits account of 3 to 5 years to ensure security and to comfortably enjoy your returns.

How many different vested benefits accounts can one have?

The law states that you can open two vested benefits accounts. Indeed, having two different vested benefits accounts can be beneficial when comparing such accounts.

This is referred to as the splitting method, which allows for significant tax reductions when withdrawing funds from vested benefits accounts from one year to another.

Support for your vested benefits transfer:

Being supported for your vested benefits transfer is crucial. Choose to be guided by a vested benefits professional to assess accumulated returns each year.

It’s also essential that your advisor tailors their strategy for your vested benefits to your profile, ensuring no unpleasant surprises.

Investing your vested benefits account?

Indeed, we’ve seen that very low interest rates and additional fees, such as account maintenance fees, make comparisons of vested benefits accounts quite challenging.

So, why not consider investing your vested benefits account? However, there are important factors to carefully consider for this option.

Indeed, certain vested benefits foundations offered by private banks allow for investing vested benefits accounts, resulting in significantly higher returns than the previously mentioned 0.2%.

Adhering to OPP2 regulations, these vested benefits foundations offer various investment portfolios with varying percentages of equities. The advantages of investing your vested benefits account are numerous:

  • Returns averaging between 2% to 5% depending on the years.
  • Different investment portfolios.
  • Personalized management and guidance for your vested benefits account.
  • Potential environmentally-friendly and sustainable development-oriented investments.

However, it’s important to note that a longer-term investment horizon and a strategy tailored to your profile are necessary. You can find more details on the vested benefits page of our website.

To receive guidance in choosing your vested benefits provision and benefit from a comparison of vested benefits accounts, don’t hesitate to fill out the form below!



Caisse d'Epargne d'Aubonne société coopérative
0.- CHF
Caisse d'Epargne d'Aubonne société coopérative (avenirplus)
36.- CHF
Caisse d'Epargne de Nyon société coopérative
0.- CHF
Banca dello Stato del Cantone Ticino
36.- CHF
Burgerliche Ersparniskasse Bern, Genossenschaft
0.- CHF


  • Aargauische Kantonalbank 0.010%
  • Acrevis Bank AG (Rendite) 0.020%  *FEES
  • Acrevis Bank AG (avenirplus) 0.020% 
  • AEK BANK 1826 Genossenschaft (Rendita) 0.010%
  • AEK BANK 1826 Genossenschaft (avenirplus) 0.010% 
  • Alpha RHEINTAL Bank AG (Privor) 0.010%  *Frais de tenue de compte
  • Alpha RHEINTAL Bank AG (avenirplus) 0.010% 
  • Alternative Bank Schweiz AG 0.000% 
  • Appenzeller Kantonalbank 0.030% *FEES
  • Baloise Bank SoBa AG 0.010%
  • Banque Cantonale Vaudoise 0.010%
  • UBS AG 0.010% *FEES
  • PostFinance AG 0.010% *FEES