A voluntary purchase of pension benefits is financially interesting. Anyone investing elsewhere would have to earn a return of around 10% to generate the same capital after 10 years.
However, buybacks are possible and worthwhile only if three conditions are met:
If you have a pension gap or a coverage shortfall, for example due to recent arrival in Switzerland and not having paid pension contributions since age 25;
Those who have withdrawn part of their retirement capital to buy a residential property first have to repay this advance withdrawal before they can buy back again. Until full reimbursement, previous tax benefits will not be cancelled;
In case of buyback, you need to ensure your pension fund is in a healthy financial situation (coverage ratio of 100% or more).;
Buybacks are usually the most effective if carried out 3 to 10 years before retirement. They usually have the greatest tax benefits during this time frame. The earlier you buy back, the more the tax benefits are impacted. It is important to note that no lump-sum withdrawals are permitted within 3 years of buying back.