Can you use the 2nd pillar for home ownership?
Yes, this is possible. Funds from your pension fund can be used to finance home ownership. Either as an early withdrawal: Every 5 years and up to 3 years before retirement. The minimum amount for the early withdrawal is CHF 20,000, or as a pledge: either by your saved retirement assets or by your disability and death benefits from the 2nd pillar.
The following forms are considered residential property:
Sole ownership
Co-ownership in the case of cohabiting partners, half each
Joint ownership for married couples
Condominium ownership
For investments in residential property
For amortization of mortgage loans
For investments in residential property
And what are the consequences of an advance withdrawal or pledge?
An advance withdrawal primarily has the following consequences:
The mortgage amount decreases
The capital drawn must be taxed
There will be a pension reduction (pension gap) if you do not pay in again at a later date.
Possible gaps in benefits for disability and death risks may need to be covered with a risk policy
The capital withdrawal is entered in the land register.
Tax optimization by means of voluntary payments into the pension fund is only possible again once the lump-sum withdrawal has been repaid
Since the pension situation does not normally change in the event of pledging (exception: liquidation of own home), the savings processes and risk benefits continue as normal.
