Rising property prices make the dream of home ownership increasingly difficult for many families. The pension fund can help to make this possible. It is possible to withdraw funds from occupational pension provision in advance for the financing of a home.
For what purpose can funds be withdrawn?
In principle, pension assets can be withdrawn for the purchase of a home. It should be noted that the property must be owned for one's own use. The property must therefore be inhabited by the owner. Whether the future residence is in Switzerland or abroad is irrelevant.
The advance withdrawal can be used as equity for the purchase, the repayment of the mortgage, the acquisition of shares in a property or even the financing of renovations.
There are, however, certain limits to withdrawing from the 2nd pillar:
- The advance withdrawal can only be used for one property at a time.
- The minimum amount of the advance withdrawal is CHF 20,000.
- An advance withdrawal can only be made every 5 years.
- If you reach the age of 50, only the amount paid in up to that point can be withdrawn.
If you wish to sell the property you have purchased with the advance withdrawal, the amount received must in principle be repaid.
There is, however, one important exception.
If the proceeds of the sale are used in the following two years to purchase a new property, the amount does not have to be repaid.
The withdrawn capital is then transferred to a vested benefits institution for two years and can be used to purchase a new home.