If you are toying with the idea of starting your retirement abroad at an earlier age, there are a few things you need to think about. First, you need to find an affordable place to retire. This will depend on your assets and income.
Next, figure out how you want to spend your retirement abroad. Do you want a laid-back lifestyle with plenty of time to relax, or do you want to work hard beforehand and live life to the fullest so you can retire later?
Once you know which lifestyle is right for you, figure out how much money you can afford to spend on living expenses each month. Finally, take into account your health status and whether or not you believe in it.
What to expect when you retire abroad
If you’ve decided to spend your retirement abroad, the next thing you need to do is find an affordable place to live. This will depend on your assets and income. If you have a lot of money saved, it may be better to retire in a wealthy country like Europe or North America. However, if you only have a few thousand dollars saved, you may not be able to find a retirement home in every country in the world.
How much money should you save for retirement?
If you want to retire comfortably, you need to save a lot of money. To do this, you can save in a variety of ways, such as through a 401k or IRA account, investing in stocks, or raiding your family’s savings. It’s important to have enough saved so that you can cover your expenses when you retire overseas and live a comfortable life.
Are you health conscious?
If you are thinking of retiring abroad, it is important that you are health conscious. There are a few things you can do to improve your health. For one, you should eat a healthy diet. By doing so, you will reduce your risk of developing diseases such as obesity or heart disease. You can also get enough exercise. Regular exercise has been shown to reduce the risk of developing diabetes, stroke and other diseases.
Ways to get pension abroad before you are old
1st Pillar: Voluntary AHV/IV
Swiss nationals who have not yet reached retirement age, are no longer subject to compulsory insurance and move to a third country outside the EU/EFTA may be able to join the voluntary AHV/IV scheme to avoid gaps in contributions. This option is not available in the case of a move to the EU/EFTA. It should be noted, however, that contribution periods that a person has completed after becoming eligible for the old-age pension are no longer taken into account for the calculation of the pension.
This also applies to early retirement pensions. Contact the cantonal compensation office to clarify your situation. This applies in particular if you go abroad with a state pension advance or as a non-employed person before you receive your pension.
Pillar 2: Advance withdrawal of BVG benefits
The pension regulations of the pension fund with which you are now insured are always decisive for benefits from the second pillar. However, all pension plans must provide the legal minimum benefits for the mandatory part of the pension fund.
Many laws allow early retirement. According to the law, the earliest possible age for receiving retirement benefits in the form of a pension or a lump-sum settlement is 58.
The pension fund regulations specify whether the pension can also be drawn in the form of a lump sum (see also section “Drawing the pension”). If employment ends after age 59/60 but before the statutory retirement age, the second pillar (retirement assets) is transferred to a vested benefits institution and can then be drawn as a lump sum. The lump sum can be withdrawn at any time.
Cash payout alternatives before retirement age in accordance with the rules of the pension system.
A cash payout is generally possible even if the beneficiary leaves Switzerland permanently before the age of 59/60*. If the beneficiary moves to the EU/EFTA, the withdrawal is limited to the extra-mandatory part under certain conditions.
The extra-mandatory part is “parked” in a vested benefits account or a vested benefits policy until age 59/60 and can then be withdrawn. Before you emigrate, it is best to ask your previous pension fund and the central office of the 2nd pillar about your credit balance from the occupational pension plan. The Central Office of the Second Pillar can tell you if there are still credits available from the second pillar.
Personal pension plan
You can claim benefits from the tax-privileged tied pillar 3a from the age of 60, regardless of where you live. For information on lump-sum repayment arrangements, contact your pension provider.
Did reading this article make you want to enjoy your pension abroad earlier? Thanks to this article, you already know some of the ways in which you can fulfill this dream.
If you have any questions, we are of course at your disposal. Just send us a message and we can respond to your individual case.