The vehicle that makes you the owner of your capital.
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The vested benefits account is the vehicle that makes you the owner of your 2nd pillar capital again. When you leave a pension fund without joining a new one, your LPP assets MUST be placed in a vested benefits solution. The choice of that account determines the return, the availability and the transfer of your capital.
What is a vested benefits account?
It is an account (banking foundation) or a policy (insurance) that receives your LPP termination benefit when you leave an employer without transferring to a new pension fund: unemployment, self-employment, career break, departure abroad. The capital remains dedicated to retirement, but it belongs to you — unlike in a pension fund where collective rules decide for you.
Account, policy or securities: the 3 options
| Solution | Average return | Risk / flexibility |
|---|---|---|
| “Default” bank account | ~0.08%/year | None, but your capital sleeps |
| Insurance policy | Low, fees often high | Rigid, early-exit penalties |
| Securities strategy (OPP 2) | ~3–4%/year over the long term | Market fluctuations, suited to a 5+ year horizon |
Over 20 years, the gap between 0.08% and 3.5% on CHF 100’000 represents roughly CHF 90’000 of missed growth. Past performance is no guarantee of future results, but the benchmark indices (Pictet LPP, UBS, Swisscanto) show the long-term trend.
When can the capital be withdrawn?
- From age 60 (up to 5 years before the reference age), or deferred to 70.
- Buying your main residence (EPL withdrawal).
- Becoming self-employed as your main activity.
- Leaving Switzerland permanently (extra-mandatory part freely, mandatory part depending on destination country).
What happens on death?
This is the major advantage: the capital in a vested benefits account is passed on in full to your designated beneficiaries — spouse, partner, children even as adults. In a pension fund, your loved ones receive at best partial pensions, and the residual capital stays with the fund.
How to choose the right foundation?
Compare fees, the investment strategy offered, withdrawal flexibility and the solidity of the institution. This is exactly where we support you: after finding your assets, we help you consolidate them in a solution aligned with your horizon and your objectives — explained transparently, with no obligation.
Frequently asked questions
Can I have several vested benefits accounts?
Yes, you can split your termination benefit between two foundations — useful to stagger withdrawals and smooth taxation.
Is the capital taxed?
Not while it stays in the account. On withdrawal, it is taxed separately from income, at a reduced rate that varies by canton.
Can my employer or the fund refuse the transfer?
No. The termination benefit is yours by law (LFLP). The fund must transfer it according to your instructions.
Your LPP assets are waiting for you.
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