Lump sum (capital withdrawal)
Taking pension-fund or 3a money as a one-off payment instead of a pension.
It is taxed once, separately and at a reduced rate. It gives flexibility and can be left to heirs, but you carry the investment and longevity risk.
Tools that use it
Related terms
- Pension-fund pensionA lifelong monthly payment from the pension fund, set by the balance and the conversion rate.
- Capital withdrawal taxThe separate, reduced tax on lump sums from the pension fund, vested benefits and Pillar 3a.
- Conversion rateThe percentage of your pension-fund balance paid each year as a lifelong pension.
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Swiss pensions
Your pension fund before 65: annuity, lump sum or leave it
What you can do with second-pillar money if you stop working early: early retirement, a vested benefits account, a lump sum, and the tax and risk trade-offs.