Pension-fund pension
A lifelong monthly payment from the pension fund, set by the balance and the conversion rate.
It protects against living long and is taxed as income every year. It is usually not adjusted for inflation.
Tools that use it
Related terms
- Lump sum (capital withdrawal)Taking pension-fund or 3a money as a one-off payment instead of a pension.
- Conversion rateThe percentage of your pension-fund balance paid each year as a lifelong pension.
- BVG (pension fund)The second pillar, the occupational pension fund that employees and employers pay into, paid out as a pension, a lump sum or both.
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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.