Improvements in the 2nd pillar for older unemployed persons as of 2021

Employees aged 58 or over who receive notice of termination from 1 January 2021 can now leave their pension assets in their pension fund.

Here are some advantages of doing so:

  • You no longer have to park your pension fund capital in a vested benefits account, which earns almost 0 percent interest. In the pension fund, the compulsory part of your pension fund money will earn interest at a minimum of 1 percent.
  • You can draw a pension when you retire. When switching to a vested benefits account, the only option is a lump-sum withdrawal.
  • Those affected can continue to pay premiums voluntarily in order to maintain insurance coverage and to increase their retirement capital. If this takes longer than two years, the credit balance is paid out as a pension. A lump-sum payment is not made unless the pension fund provides otherwise in its regulations. The pension funds can stipulate in their regulations that continued insurance after dismissal is possible from the age of 55. For example, this is the case with the Migros Pension Fund.

Would you like more information or advice on this topic? Do not hesitate to contact us directly.