Vested benefits bank account vs insurance policy

After working in Switzerland for 10 years we are finally moving back to Ireland. I have been told that we cannot take our pension fund savings with us when we leave, but have to keep them in Switzerland as vested benefits until we retire.

So here is the question: Is it a better idea for us to move the money from our pension funds into a Swiss vested benefits bank accounts or take out vested benefits insurance policies?

Which is more profitable long-term? We are at least nearly 20 years away from retirement age so that money will be sitting for a long time.

What are the main differences between vested benefits insurance policies and bank accounts?

 

Hi there,

The primary difference between vested benefits bank accounts and vested benefits insurance policies are as follows:

1. Swiss banks are free to adjust interest rates for vested benefits accounts at any time, while life insurance providers can only adjust interest rates annually.

2. Assets held in a life insurance policy benefit from greater protection against insolvency than those held in a bank account. Check out this post for more information on life insurance asset protection. You can learn more about what happens to asset held in banks which go bankrupt here.

3. Life insurance policies for vested benefits combine a savings account with insurance. You pay premiums for life insurance coverage. Many Swiss banks provide vested benefits accounts at no annual fee.

Vested benefits life insurance policies generally combine a life insurance policy with a vested benefits savings account. However, the premiums you pay for life insurance and the interest rates you earn on your assets may not be the most favorable available.

Get as many insurance quotes as possible and compare both the life insurance premiums and the vested benefits interest rates to those of non-bundled life insurance policies and vested benefits accounts before you make your final decision.

Best regards from Moneyguru

More on this topic:
Vested benefits account comparison
Life insurance comparison