Current Taxation of Capital Benefits
Credit benefits from occupational (2nd pillar) and private retirement savings (3a/3b) are currently taxed in Switzerland at a reduced rate. This applies to both lump-sum payments and pension benefits after retirement age. The reduced taxation is a central element of the Swiss pension system and is intended to promote asset accumulation in old age.
Impact of a Tax Increase
A significant increase in the direct federal tax on these capital benefits would noticeably lower net returns:
- Lower Returns: The effective after-tax return would decrease, especially affecting long-term savers.
- Changed Investment Decisions: Investors might prefer alternative investment forms to avoid rising taxes.
- Risk to Retirement Provision: Particularly affected would be individuals relying on lump-sum payments – for example, to finance a home or to close gaps in provision during retirement.
- Social Aspects: Higher taxation could particularly impact middle-income groups, as they often rely more on private provision than very high incomes.
Political Debate
The discussion surrounding a possible tax increase is politically contentious. While some cantons like Schwyz are even discussing a further reduction in taxation, there are also voices calling for a stronger burden – particularly on high assets or large lump-sum payments. However, critics warn of negative effects on the entire pension system, pointing out that many households already struggle to service their mortgages or close provision gaps in retirement.
Legal Framework
The current legal situation provides:
- Withdrawal from Pension Funds: For withdrawals for home financing, capital payment taxes apply; however, these can be reclaimed within three years after repayment.
- Annuity Insurance (Pillar 3b): New regulations for taxation were published for 2025; it remains to be seen how possible changes will concretely affect.
Conclusion
A massive increase in the direct federal tax on capital benefits from occupational and private pensions would have significant impacts: it would not only reduce the net returns of many savers but also shake confidence in the existing system. Particularly affected would be middle-income individuals as well as those households that already struggle to secure their financial situation in retirement. The political debate also shows differing interests between cantons and parties as well as between various population groups.