You're High-Net-Worth: Should Your Retirement Savings Be in a Swiss Bank?

The spotlight is shining on Swiss banks and offshore investment accounts. The strategy of wealthy Americans moving assets overseas in search of safety and stability in uncertain times is back in vogue. What’s causing the flow of U.S. savings across the pond? Acute economic uncertainty in the U.S.

With the dollar losing value, tariffs causing financial angst, and some economists warning that the Trump administration's economic policies will push spiraling U.S. debt even higher, high-net-worth (HNW) Americans (defined as having at least $1 million in liquid assets) are paying attention. Many are looking to protect their money and diversify their portfolios, and are moving assets — including retirement account balances — to Swiss banks. Switzerland, of course, is known for its financial, economic, and political stability as well as its secure, stable, and trustworthy banking system.

The Swiss franc is often regarded as a haven, offering investors currency diversification. “We indeed see an increase in demand (from American investors), like we had seen during Covid,” said Pierre Gabris, founder and managing partner at Swiss-based asset manager Alpen Partners International. “It’s mostly the fear that the U.S. dollar may devalue even more due to the large budget deficit and federal debt that has gone up dramatically.”

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

Why Swiss banks are attracting U.S. dollars

A weaker dollar reduces Americans’ purchasing power and signals that global investors have less confidence in the U.S. outlook. A recent story in the British daily, The Financial Times, headlined, “Wealthy Americans seek refuge from Donald Trump in Swiss banks,” highlights the trend. In the story, Pictet, a Swiss private bank and investment firm, said they’ve seen a “significant uptick” in American clients.

The desire of HNW Americans to manage risk by moving money to offshore accounts is due in large part to the high level of unpredictability surrounding U.S. politics and economic policy as the trade war drags on in President Trump’s second term, according to a recent blog post by global wealth protection firm The Nestmann Group, which has an office in Phoenix. Interest in Swiss banks tends to rise during periods of financial uncertainty.

“Switzerland isn’t just popular because of political concerns,” the Nestmann Group blog noted. “Swiss banks offer real advantages that become even more apparent when times are uncertain.”

Pros of offshore accounts

Diversification

One advantage of this offshore strategy is greater diversification. “Having all your money in one country, one currency, and one banking system is risky,” the Nestmann Group said.

Security

Just as Americans can open a Swiss bank account, they can also transfer their retirement savings to a Swiss financial institution that adheres to U.S. rules set forth by both the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS).

A big reason why it’s fashionable to move retirement funds to Switzerland is its robust and secure banking system.

Privacy

HNW individuals, and especially those with ultra-high net worth (assets of at least $30 million), often seek out Swiss banks for their discretion. Swiss banks are famously known for limiting the ability of third parties to gather significant information about account holders.

Cons of offshore accounts

It can get complicated

The only type of retirement assets that Americans can transfer to Switzerland are self-directed IRAs, according to Gabris. The major difference between a self-directed IRA and a traditional IRA is that it offers greater investment flexibility and diversification. While traditional IRAs invest in publicly traded stocks and bonds, self-directed IRAs allow investments in alternative assets, such as real estate and private equity, among others.

401(k) account balances, therefore, must first be rolled over to a U.S. self-directed IRA before all or part of the account balance can be transferred to Switzerland. Foreign investment firms based in Switzerland, such as Alpen Partners International, collaborate with U.S.-based self-directed IRA administrators who have experience in sending U.S. retirement savings overseas. “It is relatively easy,” said Gabris. “There is a bit of paperwork, but nothing too bad.”

But taking your pension offshore is not as easy as simply transferring the funds, Gabris stresses. This is one financial transaction that requires assistance from professionals to navigate international financial rules, tax laws, and guide you to the most trusted banks in Switzerland.

Exchange rates, interest rates and fees

Still, unless you are bearish on the U.S. and think the dollar will continue to lose significant value versus the Swiss franc, moving your retirement assets to Switzerland and going through the process may not be worth the trouble or cost, says Ingo Walter, a professor of finance, corporate governance and ethics at the Stern School of Business at New York University.

“Not unless you take a bleak view of the (U.S.) dollar and Swiss franc exchange rate and are willing to pay the fees and transaction costs involved,” said Walter. Moving money from the U.S. to Switzerland now means you will earn lower yields on your cash. Money in cash accounts earns much more in interest in the U.S. than it does in Switzerland. The current U.S. Federal Funds Rate, the central bank’s key short-term borrowing rate, is in a range of 4.0% to 4.25%. In contrast, the Swiss National Bank (SNB) policy rate is 0.0%, down from 0.25% in March.

The Swiss franc is now stronger than the dollar as well. Currently, 1 Swiss franc equals $1.25 U.S. dollars, which means the franc is trading at a 25% premium to the dollar. Said another way, $1 translates to only 0.8 francs after currency translation.

How to move a retirement account offshore to Switzerland

You can’t move your 401(k) account offshore. But you can roll retirement assets into a self-directed IRA to get the process going. Here’s a basic step-by-step guide to move a retirement account offshore, according to HFS Offshore (formerly Harbor Financial Services), a firm specializing in offshore investments.

1. Open a self-directed IRA

This new, more flexible IRA must be opened with a U.S.-based custodian or administrator that facilitates international transactions. Gabris of Alpen Partners says he uses Advanta, a self-directed IRA administrator.

2. Establish an off-shore company in Switzerland

The international business company or LLC will act as your self-directed IRAs international banking arm. Foreign banks and brokers can’t open an account for an IRA directly, but they can open offshore accounts in the name of the offshore company.

3. Open an offshore Swiss bank or brokerage account

That may sound daunting, but you don't have to open an offshore account on your own. "These are bank forms we prepare," said Gabris.

4. Transfer funds via wire from your self-directed IRA to the offshore account

Once the funds are received by your offshore Swiss financial institution, they are in your hands and under your control, and you can start investing and benefit from tax-deferred growth just like in the U.S.

You’ll want to touch base with an accountant expert in foreign matters before proceeding, too. One downside is that while U.S. tax law allows certain tax-free rollover transfers between U.S. retirement accounts, such tax treatment does not apply to transfers to “non-U.S.” retirement accounts, according to Greenback Expat Tax Services.

Banks typically require a deposit of $250,000 to $1 million or more to open an account.

Can you use offshore accounts to "hide" assets?

It is illegal to use a Swiss bank or other offshore account to hide assets from divorce proceedings or from the IRS. Although some Swiss banks facilitated this behavior, the IRS and the U.S. government have intervened to shut it down. For example, Credit Suisse was fined over $500 million in 2025 for its role in hiding U.S. accounts. Reporting is now robust, and you must disclose your accounts.

Before you leap

Moving large sums of retirement savings to Switzerland shouldn’t be taken lightly. It’s a big decision. And it’s something that should be done with the help of a financial professional with expertise in offshore accounts, says Rimma Portnova, global CEO of ARI Financial Group, which specializes in advanced life insurance planning for HNW clients.

“IRAs are something people work really hard for, and making a move without doing your due diligence and working with people with global experience in asset movement is too high a risk,” said Portnova.

Read More

• The Average IRA Balance by Age
• Three Out-Of-The-Box Retirement Moves the Wealthy Swear by
• I'm 60 with $4 Million — Can I Have a Luxury Retirement?
• What You Should Know About Spousal IRAs