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Glossary

Voluntary Purchase into Pension Fund

A voluntary purchase into the pension fund is the voluntary payment of additional capital into one's own retirement account to close gaps from career breaks, salary increases, or late entry years. It is possible only up to the level of the regulatory benefits (BVG Art. 79b para. 1). The payment is deductible from taxable income in the year of purchase, and the resulting benefits may not be drawn as a lump sum for three years (BVG Art. 79b para. 3).

At a glance

  • Purchase amounts are fully deductible from taxable income in the year of payment (DBG Art. 33 para. 1 lit. d).
  • After a purchase, the additional capital paid in may not be drawn as a lump sum for three years (BVG Art. 79b para. 3).
  • The maximum purchase amount equals the difference between the maximum permissible capital under the regulations and the actual retirement savings (gap calculation shown on the pension certificate).

Frequently asked questions

A voluntary purchase reduces taxable income directly in the year of payment while simultaneously increasing future pension assets. This can be attractive for individuals with a higher marginal tax rate or significant pension gaps. The individual benefit depends on tax rate, investment horizon, and the pension fund's regulations, and should be assessed with an independent specialist.

Part of the topic

Pension & Retirement

Sources: Eidg. Steuerverwaltung (ESTV) · Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)

This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.