What Happens to Your Second Pillar When You Leave Switzerland?

Leaving Switzerland doesn't mean losing your second pillar, but where you move decides whether you can take it with you in cash. When your Swiss job ends, your pension fund works out your vested benefit (Freizügigkeitsleistung / prestation de libre passage). If you move permanently to a country outside the EU and EFTA, including the United Kingdom, you can normally have the whole amount paid out. If you move to an EU country, Iceland or Norway and are compulsorily insured there for old age, death and disability, the mandatory BVG portion stays in Switzerland until retirement age. Only the extra-mandatory part can be withdrawn. Swiss withholding tax is deducted from every lump sum paid to someone living abroad.

Key takeaways

• Your destination and your social insurance status there decide what can be paid out. Your nationality does not.
• Moving outside the EU/EFTA (for example to the UK, USA or Asia): you can normally withdraw the full vested benefit.
• Moving to the EU, Iceland or Norway and insured there: the mandatory BVG portion stays in Switzerland on a vested benefits account or policy. The extra-mandatory portion can be paid out.
• Married people and registered partners need their spouse's or partner's written consent for any cash payout.
• Swiss withholding tax is always deducted. You may be able to get it refunded under a double taxation agreement if you apply within three years.
• If you give no instructions, your money ends up with the Substitute Occupational Benefit Institution. It's safe there, but you have to look after it.

What happens to your pension fund when your Swiss job ends

As long as you have a Swiss employer, you stay insured in its pension fund, even if you live across the border. This article applies once that employment ends and you leave Switzerland.

If your employment ends before retirement, disability or death, you are entitled to a vested benefit. That's the capital you have built up, including your employer's contributions and any buy-ins. Your pension fund can't simply keep it. It must either transfer it to a new Swiss pension fund, transfer it to a vested benefits institution, or pay it out in cash where the law allows.

Your death and disability cover carries on for one month after you leave, unless you join a new pension fund sooner. After that, any cover depends on what you choose. A vested benefits policy with an insurer can include death or disability cover. A vested benefits account with a bank foundation usually just holds your capital.

New to how the system works? Start with our Swiss second pillar explainer, or see how the three pillars fit together in the Swiss pension system explained.

Can you withdraw your second pillar when you leave? It depends on where you go

Swiss law lets you take your vested benefit in cash if you leave Switzerland permanently. For moves to the EU, Iceland and Norway, an important restriction applies. It has been in force for most EU states since 1 June 2007.

The restriction applies regardless of nationality. It also applies to cross-border commuters who stop working in Switzerland. What counts is whether you are compulsorily insured in your new country. That's decided under that country's law, not Swiss law. Taking up a job there usually makes you compulsorily insured. Not working doesn't automatically exempt you.

Mandatory and extra-mandatory: find the split on your pension certificate

The mandatory portion is the minimum retirement savings the BVG requires (BVG-Altersguthaben / avoir de vieillesse LPP). The extra-mandatory portion is everything your fund holds for you on top of that. Your pension certificate or leaving statement normally shows the BVG retirement savings as a separate figure. Ask your fund for it before you plan anything.

Illustrative example (hypothetical figures): your vested benefit is CHF 180,000, of which CHF 95,000 is the mandatory BVG portion. If you move to Germany for a new job, you could withdraw CHF 85,000 (before withholding tax) and CHF 95,000 stays in Switzerland. If you move to Canada instead, you could withdraw all CHF 180,000. The higher your salary and the more generous your employer's plan, the bigger your extra-mandatory share tends to be.

Moving to the United Kingdom after Brexit

The UK is no longer treated like an EU state for this rule. If you leave Switzerland for the United Kingdom, you can generally withdraw both the mandatory and the extra-mandatory portion, as long as the other conditions are met.

Liechtenstein is a special case

For this rule, Liechtenstein isn't treated as a foreign country, because its occupational pension rules match Switzerland's. Simply living there is enough to rule out a cash payout of the mandatory portion, and moving there is generally not accepted as a reason for any cash payout. Check with your institution before you count on one.

How the EU/EFTA check works in practice

If you move to an EU country, Iceland or Norway and want your mandatory portion paid out, your institution will need confirmation that you are not compulsorily insured there. In Switzerland, the LOB Guarantee Fund (Sicherheitsfonds BVG) handles this as the official liaison office.

1. Tell your pension fund or vested benefits institution in writing that you are leaving Switzerland permanently and would like a cash payout.
2. Fill in the LOB Guarantee Fund application form. There are country-specific forms for several EU states and a general form for the others. You or your institution can send it in, but you have to sign it.
3. The Guarantee Fund passes your request to the responsible authority in your new country. It also checks with the Central Office 2nd Pillar whether you hold other vested benefits.
4. You and your institution receive the result by letter.
5. If you are not compulsorily insured, the full amount can be paid out (provided the other conditions are met). If you are, the mandatory portion goes to a vested benefits account or policy of your choice. Only the extra-mandatory part is paid out.

Institutions usually ask for documents such as your de-registration confirmation from your last Swiss municipality, proof of your new address and your civil status documents. For larger amounts, some ask for officially certified signatures.

If your money stays in Switzerland: vested benefits accounts and policies

Some of your money may have to stay in Switzerland, or you may simply prefer to leave it there. A cash payout is an option, not an obligation. In either case, the money goes into a vested benefits arrangement:

• Vested benefits account with a bank foundation: holds your capital as savings, or invested in securities if the provider offers it.
• Vested benefits policy with an insurer: can include death or disability cover.

You can spread your vested benefit across up to two institutions and move to another provider or product at any time. Your money normally becomes available from five years before your reference age at the earliest, and is due at reference age. If you are still working, you can defer it by up to five years. A lump-sum payout also needs your spouse's or registered partner's written consent at this stage.

The EU/EFTA rule doesn't change the rules on withdrawing money for owner-occupied housing. Those still follow Swiss law and your institution's regulations. Keep your institution updated with your address abroad so it can reach you.

Leaving Switzerland close to retirement

If you stop working at or after the earliest retirement age allowed by your pension fund's regulations, you'll normally receive retirement benefits instead of a vested benefit. That means a pension, a lump sum or a mix, depending on your fund's rules. The EU/EFTA restriction doesn't apply to these retirement benefits.

Many funds set a deadline for choosing a lump sum instead of a pension. Check your regulations well before your planned retirement and move. If you leave between the earliest retirement age and the reference age and keep working (or register as unemployed), you can ask for a vested benefit instead.

How your second-pillar payout is taxed once you live abroad

If you no longer live in Switzerland for tax purposes when a lump sum is paid, Swiss withholding tax is always deducted. That applies whatever the double taxation agreement says, and even if the money goes into a Swiss bank account. Your residence status is generally judged by the date you de-registered from your Swiss municipality.

• The rate depends on the canton where the paying pension fund or vested benefits institution has its registered office, not the canton where you lived. The tax has a federal and a cantonal share, and cantonal rates vary.
• A refund may be possible. If a double taxation agreement gives your new country the right to tax the payout, Switzerland refunds the withholding tax without interest. You have to apply within three years of the payout, with confirmation from your new country's tax authority that it knows about the payout and that you live there. Some cases also need proof that the payout was actually taxed there.
• No agreement, no refund. Without a double taxation agreement, the Swiss withholding tax is final.
• Your new country may tax it too. Get advice there before you request the payout, not afterwards.

One more thing to check: if you made a voluntary buy-in into your pension fund in the three years before leaving, the benefits from that buy-in can't be withdrawn as a lump sum during those three years. That can also affect the tax deduction you claimed. Ask your cantonal tax office before you rely on it.

What happens if you leave without giving instructions

If you don't tell your pension fund where to send your vested benefit, it must transfer the money to the Substitute Occupational Benefit Institution (Stiftung Auffangeinrichtung BVG). This happens no earlier than six months and no later than two years after you leave. The money is held in an interest-bearing vested benefits account and stays yours.

Lost track of money from an earlier job? The Central Office 2nd Pillar helps you find forgotten vested benefits free of charge.

Before you leave: your second-pillar checklist

• Ask for your current pension certificate showing the BVG mandatory portion separately.
• Check whether you made a buy-in in the last three years.
• Find out whether you will be compulsorily insured in your new country. If you're moving within the EU, Iceland or Norway, apply to the LOB Guarantee Fund early.
• If you are married or in a registered partnership, arrange your spouse's or partner's written consent to any cash payout.
• Pick one or two vested benefits institutions for anything staying in Switzerland, and think about where they have their registered office.
• Give your pension fund written instructions before your last working day.
• Keep your de-registration confirmation, and note the three-year deadline for any withholding tax refund.

Your second pillar is just one part of moving away. Our leaving Switzerland checklist covers health insurance, other policies and deadlines. For the first pillar, see what happens to your AHV when you leave Switzerland. Pillar 3a follows separate rules, explained in our Swiss third pillar guide.

Common mistakes to avoid

• Assuming nationality decides. For the second pillar, your destination and insurance status are what matter.
• Thinking a blocked portion is lost. It stays yours and becomes available near retirement.
• Leaving without instructions. Your money will be moved to the Substitute Institution, and you may lose track of it.
• Treating Swiss withholding tax as final when a double taxation agreement may allow a refund, or forgetting that your new country may tax the payout as well.
• Forgetting your spouse's consent, which can hold up the payout.
• Overlooking older accounts from previous jobs.

Frequently asked questions

Can I withdraw my second pillar if I move to Germany or France?

You can withdraw the extra-mandatory portion. The mandatory BVG portion can only be paid out if you are not compulsorily insured there for old age, death and disability. The LOB Guarantee Fund confirms this with the authorities in your new country.

Can I withdraw my full second pillar if I move to the UK?

Yes. Since Brexit, the EU/EFTA restriction no longer applies to the United Kingdom, so you can generally withdraw both portions if you leave Switzerland permanently.

Do I have to withdraw my money when I leave Switzerland?

No. You can keep your vested benefit in Switzerland in a vested benefits account or policy, even if a cash payout would be allowed.

What happens if I move back to Switzerland later?

If your money is still with a vested benefits institution and you join a Swiss pension fund again, it has to be transferred into your new fund.

Can I use a blocked mandatory portion to buy a home?

The EU/EFTA restriction doesn't change the rules on early withdrawal for owner-occupied housing. Those remain governed by Swiss law and your institution's regulations, which set the conditions and the documents you need.

A sensible next step

Your pension fund decides on the payout and your tax adviser handles the tax side. What often gets missed is how these decisions fit with the rest of your move, from health insurance to the policies you need to cancel or keep. If you're planning to leave Switzerland and want an independent overview of what to arrange and when, request a consultation with Swiss Family Insurance.

Official Swiss sources

• Federal Act on Vested Benefits (FZG), Art. 2, 4, 5 and 25f, Fedlex
• Ordinance on Vested Benefits (FZV), Art. 10, 12 and 16, Fedlex
• Federal Act on Occupational Pensions (BVG), Art. 10 and 79b, Fedlex
• Cash payment on departure to an EU/EFTA state, LOB Guarantee Fund
• Information sheet: cash payment on departure to an EU/EFTA state (PDF), LOB Guarantee Fund
• Cash payout due to emigration, Substitute Occupational Benefit Institution
• Central Office 2nd Pillar: search for forgotten vested benefits
• Withholding tax on pension benefits paid to persons resident abroad, 2026 circular (PDF, German), Swiss Federal Tax Administration

Sources reviewed: 21 October 2026. This article is general information, not personal pension, tax or legal advice. Your pension fund's regulations and your personal circumstances decide your options.