What is a vested benefits account?

Why do I need a vested benefits account?

A vested benefits account is used to store your pension fund assets (also known as vested benefits) temporarily or until you reach the statutory retirement age* (64 for women [in future 65] / 65 for men). If you leave your job, for example, you also have to take your pension fund assets with you. If you start a new job, you will be asked to transfer your vested benefits to the pension fund of your new employer.

Life often gets in the way of the best-made plans. There are many reasons why you might leave your job and not start a new one straight away. Vested benefits accounts exist for this and other situations.

Here are some of the reasons why you might leave your job and might need to open a vested benefits account:

Long-term travelling
Bringing up a child
Career break or unemployment
Early termination of employment
Persons who become self-employed and do not use their vested benefits

* The assets can be withdrawn on reaching the statutory retirement age. You can apply to make a lump-sum withdrawal up to five years before reaching the statutory retirement age.

A vested benefits account is not always necessary

You can also leave your money in your previous employer’s pension fund for up to half a year. You only have to inform your previous fund of your new pension fund or vested benefits account after six months. So if you take a short break when changing jobs and go travelling for a few months, you don’t necessarily need a vested benefits account.

If you don’t register for a new account, your previous pension fund will deposit your pension assets in the national pension fund “Stiftung Auffangeinrichtung” after no less than six months but no more than 24 months.

If you are aged 58 or older, you don’t necessarily have to open a vested benefits account. If your employer has terminated your employment relationship, you can remain with your employer’s pension fund.

How do I open a vested benefits account?

You are responsible for opening a vested benefits account. You can usually park or invest your vested benefits with a number of banks and insurance companies.

You can now also open a vested benefits account for your vested benefits with frankly. frankly is suitable for pension fund members who do not intend to take up employment. With frankly, you can either keep your vested benefits in an account or invest them in Swisscanto’s multi-award winning investment products. It is also possible to invest only part of your vested benefits.

Open a free vested benefits account in frankly Web

Register online in just a few minutes and open your vested benefits account free of charge Invest in the investment products of your choice or save in cash and benefit from the interest rate (currently 0.15% per year, as of 1 October 2023: 0,40%).

Are you already a frankly customer? Simply log in to frankly via computer or tablet. Click on the "fz" tab on the left side of the frankly homepage and open a vested benefits account with frankly.

Open online now

Withdraw vested benefits

Under certain conditions, you can withdraw the money in your vested benefits account.

Interest and fees for a vested benefits account

With a frankly vested benefits account with a interest rate (currently 0.15% per year), you don’t pay any fees. If you opt for one of our high-quality Swisscanto investment products, an all-in fee of 0.45% per year will be charged on your securities portfolio. However, this does include everything, so there are no hidden costs.