Transforming Job Loss into a Pathway to Financial Optimization

Experiencing a job loss in Switzerland can bring about financial uncertainties, making it crucial to reassess and manage your insurance and financial situation. Here are key considerations to keep in mind:

1. Unemployment Insurance (Arbeitslosenversicherung):
   You are eligible for unemployment benefits provided by the Swiss Unemployment Insurance if you have made contributions to the insurance during the last 12 months before unemployment. Understanding the application process and required documentation is essential for accessing financial support during your job search.
   If you want to apply for a C permit, going to the unemployment office can have a major negative impact on your application and a different strategy is needed in this case. We will be happy to advise you!
   
   

2. Severance Package and Employment Contracts:
   Review your employment contract and any severance package you may receive. Understand the terms and conditions, including non-compete clauses and the duration of continued benefits from insurances and extension possibilities. Seek legal advice if needed.
   
   

3. Life and Disability Insurance:
   Review your life insurance and disability insurance policies. Some policies may include provisions for premium waivers or reduced coverage in case of disability or unemployment and some insurances may be prolonged for a certain period of time. Contact your insurance provider to understand the options available to you.
   
   

4. Retirement Savings (BVG/2nd Pillar):
   Use this moment for tax optimization and risk reduction. Transfer your pension fund to two different foundations. With the changes in law becoming effective January 1st, 2024, it’s important to know, that you will be forced to withdraw all your vested pension funds at once, when you retire. To still profit from the planned tax optimization, you will have to take out one of the accounts still during your working life. One the other hand, the BVG has become more flexible and be able to accompany you when gradually retirering. It is worth comparing the different providers. Possible investment strategies and prices differ considerably. We can help you make the right choice.
   
   

5. Review Budget and Expenses:
   Assess your current financial situation and create a budget that reflects your reduced income. Prioritize essential expenses and consider making adjustments to discretionary spending to align with your new financial reality.
   
   

6. Financial Counseling:
   Seek guidance from financial advisors or counselors who specialize in employment transitions. They can provide insights into managing debt, optimizing your budget, and developing a financial strategy tailored to your current situation.
   
   

7. Job Seeker Programs and Support:
   Explore job seeker programs offered by the Swiss government or employment agencies. These programs may include financial support, training opportunities, and career counseling to enhance your employability.
   
   

8. Network and Professional Development:
   Use the time between jobs to enhance your professional skills and expand your network. Attend industry events, workshops, and online courses to stay relevant in your field. Networking can lead to new opportunities and contacts an often result into surprises.
   

Client sometimes say when looking back: losing my job was the best thing that happend to me! Remember, navigating financial challenges during a job loss requires careful planning and proactive measures. Staying informed about your insurance coverage, understanding available benefits, and seeking professional advice will contribute to a more secure financial future.