Buy-in

5 reasons why buying into your pension fund is worthwhile

Save tax

Make voluntary payments to your pension fund and save tax. This is because you can generally deduct these contributions from your taxable income.

The more you earn, the more interesting buying into the pension fund is for you. This is because high incomes are subject to a higher tax rate (progressive taxation). The deductions you can make by buying into your pension fund reduce your taxable income – and thus the tax you pay. If you spread your purchase across several years, you will benefit from a lower tax rate multiple times.

In addition, the pension assets are exempt from wealth tax. And the interest does not need to be taxed as income. This is why buying into the pension fund can be worthwhile for your tax bill in several ways.

Save tax

Make voluntary payments to your pension fund and save tax. This is because you can generally deduct these contributions from your taxable income.

The more you earn, the more interesting buying into the pension fund is for you. This is because high incomes are subject to a higher tax rate (progressive taxation). The deductions you can make by buying into your pension fund reduce your taxable income – and thus the tax you pay. If you spread your purchase across several years, you will benefit from a lower tax rate multiple times.

In addition, the pension assets are exempt from wealth tax. And the interest does not need to be taxed as income. This is why buying into the pension fund can be worthwhile for your tax bill in several ways.

Increase your old-age pension

The aim of the AHV and the pension fund is to secure your standard of living in the third stage of life. However, the normal contributions paid are not enough to do this in most cases because monthly income generally falls by up to 40 percent after retirement. In order to reduce this drop in income, you can make voluntary payments into the pension fund. This increases your annual old-age pension – for life.

Increase your old-age pension

The aim of the AHV and the pension fund is to secure your standard of living in the third stage of life. However, the normal contributions paid are not enough to do this in most cases because monthly income generally falls by up to 40 percent after retirement. In order to reduce this drop in income, you can make voluntary payments into the pension fund. This increases your annual old-age pension – for life.

Fill pension gaps

Do you have any pension gaps in the pension fund? For example, because you achieved your dream of travelling around the world or continued your education and temporarily did not pay contributions? Anyone who moves to Switzerland from abroad or changes jobs might also have a pension gap. By buying into your pension fund you can fill this gap.

Fill pension gaps

Do you have any pension gaps in the pension fund? For example, because you achieved your dream of travelling around the world or continued your education and temporarily did not pay contributions? Anyone who moves to Switzerland from abroad or changes jobs might also have a pension gap. By buying into your pension fund you can fill this gap.

Favourable interest rate

Savers want high interest rates. But banks have massively reduced their interest rates on savings accounts in the past few years. This makes it all the more worthwhile to pay into the pension fund. This is because pension funds generally pay higher interest on the funds they manage than banks. Profond paid interest of 2.5 per cent on the pension assets in 2023.

Favourable interest rate

Savers want high interest rates. But banks have massively reduced their interest rates on savings accounts in the past few years. This makes it all the more worthwhile to pay into the pension fund. This is because pension funds generally pay higher interest on the funds they manage than banks. Profond paid interest of 2.5 per cent on the pension assets in 2023.

Professional management of your pension fund assets

At Profond you have the guarantee that proven investment experts with many years of experience will manage your retirement capital professionally.

Professional management of your pension fund assets

At Profond you have the guarantee that proven investment experts with many years of experience will manage your retirement capital professionally.

This is how you proceed

The process step by step in the explanatory video:

Der Prozess Schritt für Schritt im Erklärvideo

Purchase; buy-in to your pension fund in six simple steps:

Step 1:

Check the Pension Fund Regulations

Find details on buying in on page 14, Art. 43.

Step 2:

Check your pension certificate

You will find your “theoretical potential buy-in amount” under the heading “Additional information”.

Step 3:

Obtain tax information

If required, ask your adviser about the optimum tax deduction.

Step 4:

Apply for a purchase

Calculate and apply for your purchase in ProfondConnect under “Simulations with application”. If you do not yet have access to ProfondConnect, you can request your access code here.

Step 5:

Advice from Profond

You will receive a binding buy-in calculation and payment slip from Profond.

Step 6:

Payment of the buy-in amount

Finally, pay in the buy-in amount. You will then receive a tax certificate from Profond.

Buy-in now

Important!

Be sure to keep the documents relating to your purchases, in particular the purchase confirmations. Many pension funds only take into account purchases made in the last three years. In the event of death, however, depending on the regulations of your pension fund, it may be crucial to know how much was purchased and how much was saved. This is because often only the purchased capital is paid out in addition to the survivor’s pensions. Therefore, it is important to be able to prove all purchases made.