Vested Benefits Account (Freizügigkeitskonto)

A Vested Benefits Account (Freizügigkeitskonto or Freizügigkeitspolice) is a blocked retirement account that holds your Pillar 2 pension capital when you leave a job and don't immediately transfer it to a new employer's pension fund. Common situations include career breaks, moving abroad temporarily, self-employment, or job gaps. The capital remains locked until retirement age (or eligible early withdrawal events).

For 2026, you can open accounts at banks (Freizügigkeitskonto) or insurance companies (Freizügigkeitspolice). Splitting funds into two accounts provides tax advantages when withdrawing at retirement, as each withdrawal is taxed separately at progressive rates. Interest rates on vested accounts are typically low (0.25-1%), though investment options exist. Early withdrawal is only permitted for home purchase, emigration, or starting self-employment—not for general living expenses.

Real-World Example If Maria leaves her job with CHF 150,000 in Pillar 2 and takes a 1-year sabbatical before her next job, she transfers the funds to two vested benefits accounts (CHF 75,000 each). During retirement, withdrawing CHF 75,000 twice (separately) results in lower progressive tax (approximately CHF 3,000 + CHF 3,000 = CHF 6,000 total) than withdrawing CHF 150,000 once (approximately CHF 9,000), saving CHF 3,000.