FAQ

The current income is used in particular to estimate the expected AHV pension and to determine the standard budget. The standard budget is based on the Household Budget Survey (HABE) of the Federal Statistical Office and is calculated automatically from the income.

Yes. The AHV pension you enter or that is estimated is first recorded without the 13th AHV pension. For the further calculations the additional monthly pension is taken into account and spread over twelve months. This increases the monthly AHV retirement pension shown.

The tax domicile is used to calculate the income, wealth and lump-sum benefit taxes. Because the tax burden can differ depending on the place of residence, the tax domicile has a substantial influence on the results.

The income and the pension benefits of both persons influence the financial situation of the whole household. For a meaningful joint calculation the details of both persons should therefore be recorded in full.

If you do not know your expected AHV pension, you can use the estimated value proposed by the calculator. For a calculation that is as precise as possible, a current AHV pension forecast is recommended.

The needs-covering PF pension is the PF pension that, together with the AHV pension, is required to cover personal living needs after retirement.

No. If individual details are not known, you can work with estimates in part. The more precise your details are, the more meaningful the results become.

The standard budget serves as a guide for the expenses expected after retirement. It is calculated automatically from the income and from average household expenses according to the Household Budget Survey (HABE) of the Federal Statistical Office.

No. The standard budget serves only as a guide. The individual budget items should be adjusted to the personal situation in life and to the expenses expected after retirement.

The calculation is carried out with specialised tax software on the basis of the personal details recorded (e.g. tax domicile, religious denomination and taxable assets). They can be adjusted manually if required.

A shortfall arises when the income expected after retirement is not sufficient to cover the expected expenses.

A surplus arises when the income expected after retirement is higher than the expected expenses.

Yes. Many expenses change after retirement. Some costs disappear or become lower, others can rise. Adjust your budget as closely as possible to your expected situation in life.

The interest guarantee is a key figure that shows the financial attractiveness of your lifelong PF pension. Its level is influenced in particular by the conversion rate, life expectancy and the individual benefits of the pension fund. It indicates which average annual net return you would have to achieve with a private investment in order to do at least as well in the long term as with the PF pension.

The higher the interest guarantee, the higher the net return achieved in the long term with a private investment has to be for a lump-sum withdrawal to become equally attractive or more attractive in terms of return.

No. The interest guarantee does not correspond to the interest paid on the pension fund assets by the pension fund. It is a calculated comparison figure and describes the implicit return of the lifelong PF pension based on the available pension fund assets. It can therefore be compared with the expected net return of a private investment.

The interest guarantee is calculated individually for each person. Differences can arise in particular from the conversion rate and from statistical life expectancy.

No. The interest guarantee is an important comparison figure, but it should always be assessed together with further factors such as taxes, investment risk, financial needs and personal preferences.

The PensionCompass calculator takes into account the relevant municipal, cantonal and federal taxes as well as, depending on the religious denomination, church taxes. The calculation includes in particular the income tax, the wealth tax and the one-off lump-sum benefit tax. The calculations are based on the tax rules in force at the time of the calculation and on the personal details entered. Future changes in tax law, in tax rates or in the personal situation can lead to different results.

The tax burden differs from canton to canton and from municipality to municipality. The same income or the same lump-sum withdrawal can therefore lead to a different tax burden.

Yes. In Switzerland, lump-sum benefits from occupational pension provision are taxed separately from other income and at a special rate. This tax is shown separately in the calculator.

When the tax rate is calculated, Pillar 3a assets and vested benefits drawn at the same time are also taken into account. Because of tax progression this can result in a higher tax burden.

With a pension, the pension payments are taxed annually as income. A lump-sum withdrawal, by contrast, is taxed once at the time of the withdrawal. After the lump-sum withdrawal, however, further indirect tax consequences can arise: the capital drawn and still available is in principle subject to wealth tax. In addition, the interest and dividend income earned on it is taxed as income. Both the level and the timing of the tax burden therefore differ between pension and lump sum.

Looking only at the moment of retirement would hide the long-term tax effects. The estimated tax consequences are therefore added up over the expected lifespan.

With a lump-sum withdrawal a one-off lump-sum benefit tax is due. At the same time, however, the higher taxable assets and the income taxes on capital income can increase the long-term tax burden. The calculator also takes these indirect tax effects into account.

The interest guarantee of the PF pension is set against the historical net return of a private reinvestment of the lump-sum withdrawal.

What matters is the return that actually remains. It therefore allows a more realistic comparison between a lump-sum withdrawal and the PF pension. This is why, for example, the asset management costs and the income taxes on dividend and interest income are taken into account.

The net return is influenced in particular by the chosen investment strategy, the analysis period, the asset management costs and the personal marginal tax rate.

Even small differences in the annual costs have a considerable effect on the development of assets over many years through the compound interest effect. It is therefore worth comparing the costs of different investment solutions carefully.

No. The returns shown are based on historical market data. They show how the chosen investment strategy would have developed in the period considered and are neither a forecast nor a guarantee of future performance. The actual return can be higher or lower.

In this case the chosen private investment would have achieved a higher net return in the historical period considered than the interest guarantee of the PF pension. It cannot be concluded from this, however, that this will also be the case in the future.

No. A higher return does improve the development of the assets. Whether a lump-sum withdrawal is more advantageous overall than a PF pension depends, however, also on further factors, in particular on the interest guarantee, taxes, investment risk, life expectancy and your personal needs.

If the two PF pensions have different interest guarantees, it can make sense from a pure return perspective to consider a lump-sum withdrawal rather for the pension fund benefit with the lower interest guarantee. Further factors such as security, needs and personal preferences must also be taken into account.

The risk profile helps to determine an investment strategy that matches your willingness and your capacity to take risk. This allows the calculations for a lump-sum withdrawal to be as realistic as possible.

The personal risk profile results from the subjective risk appetite and the objective risk capacity. The more conservative of the two values is decisive.

Risk appetite describes the personal willingness to accept fluctuations in value and losses. Risk capacity describes the financial ability to bear such losses.

The key figure is expressed in years and serves as an indicator of the objective risk capacity. It shows how long a possible shortfall could be covered by the assets taken into account.

The maximum loss shows which negative performance can statistically occur within one year with the chosen investment strategy. It illustrates the investment risk and is not a forecast.

No. It is derived from the risk profile determined and serves as a guide. It does not replace individual investment advice and is expressly not a recommendation.

The results show the financial effects of drawing a pension, of a lump-sum withdrawal or of a combination of both. They serve as a guide and help you to compare the different forms of withdrawal with each other.

The calculation steps build on each other. Individual entries are therefore used in several calculations. A change can accordingly affect various results.

No single result should be considered in isolation. What matters is the combined view of living needs, interest guarantee, return opportunities, risks and taxes.

No. Besides the financial results, the decision between pension and lump sum also depends on personal needs and preferences. The calculator provides a well-founded basis for the decision, but does not take the decision for the insured person.

For questions on the results or on their personal pension situation, insured persons should turn to their pension fund or to an independent specialist. Specific tax, legal and investment questions should be assessed by appropriately qualified specialists.

No. ASIP does not answer individual enquiries from insured persons. For questions on the personal pension certificate, on the calculations or on the individual pension situation, insured persons should turn directly to their pension fund or to an independent specialist.

Besides the financial results you should also consider personal aspects, for example:

• your financial security
• your willingness to take risk
• your family situation
• your health and life expectancy
• your wish for flexibility or for a guaranteed lifelong pension

The PensionCompass calculator supports you in the financial assessment. You should take the final decision on the basis of your overall personal situation.

Contact your pension fund directly. It can give you information on your pension certificate, your benefits and your personal pension entitlements.

You will find the contact details on your pension certificate or on your pension fund’s website. If you do not know which pension fund you are insured with, your employer’s HR department will help you.

If you no longer know where pension assets from previous employment relationships are held, you can request a free search from the 2nd Pillar Central Office.

You will find further information at:

• www.sfbvg.ch
• Enquiry about credit balances – LOB Guarantee Fund

Note: the enquiry is free of charge. Processing can take some time; the answer is usually sent to you by post. Be careful with enquiries via third-party apps or if you are contacted by telephone by unknown providers.

If you would like a neutral explanation of your pension certificate or of your pension fund’s benefits, you can contact the association Kostenlose Pensionskassen-Auskünfte.

You will find further information at www.kostenlose-auskuenfte.ch. The association offers free and independent information from experienced specialists.

A comparison is not easy, because every pension fund has different benefits and financing models.

You can get an initial assessment from your pension fund or your employer. If you are a member of a trade union, many trade unions also offer advice on occupational pension questions.

First clarify open questions with your pension fund. You will already get a lot of information there on your pension benefits.

If you would like comprehensive financial or retirement planning, make sure that the advice is as independent as possible. Be particularly attentive when advice is combined with the sale of financial products or asset management services. Have the different offers explained to you and compare them carefully.