Pension fund withdrawal

All without beating about the bush

Anyone who becomes self-employed as a sole proprietorship or as a general partnership has the option of drawing their money from the pension fund.

Owners of a corporation (Ltd Liab Co or Ltd) cannot draw the pension fund money.

The following criteria must be met:

  • Establishment of a private company (sole proprietorship or general partnership)
  • main occupation self-employment
  • Confirmation from the Compensation Office of commencement of activities
  • Complete the application to the relevant pension fund and submit it within one year of starting self-employment

main occupation self-employment

If a person exercises only one activity, this is basically a main occupation. For several activities, the workload, income and stability of the activities are taken into account.

Shareholders of a general partnership are assessed separately. Only shareholders whose main occupation is to carry out the activity may advance funds.

Confirmation from the compensation office

Once the company has been set up, you will receive a questionnaire from the compensation office. This must be completed and sent to the appropriate address together with the following documents (if available)

  • Extract from the commercial register
  • 3 invoices to different clients including proof of receipt of payment
  • Address of the website
  • Letterhead with company logo, flyer or brochure
  • Rental contract
  • Proof of purchase of investments made
  • General contracts (e.g. employment contracts, contracts with suppliers, etc.)

After 14-21 days you will receive confirmation from your compensation office.

With this confirmation you can request payment of the occupational benefits. Your pension fund or bank (in the case of a vested benefits account) will be happy to provide you with information in this regard.

Tax implications

The payment of pension assets leads to taxation. This is recorded and carried out separately from your tax return. Depending on the amount paid out and the canton of residence, the tax burden may be higher or lower. The cantonal tax offices provide tax calculators. For a payout of CHF 100,000.-, a tax burden of approximately 5% must be expected.


In our blog post on the advance withdrawal of pension funds, you will find further information and examples of how to withdraw occupational benefits when founding a partnership.