Early withdrawal for a home (WEF)
Using pension-fund or 3a money to buy a home you live in.
It lowers your future pension and is taxed as a lump sum. The money must be repaid if you sell the home without buying another.
Related terms
- BVG (pension fund)The second pillar, the occupational pension fund that employees and employers pay into, paid out as a pension, a lump sum or both.
- Affordability (Tragbarkeit)The bank test of whether you can carry a mortgage: housing costs at a notional interest rate must stay below about a third of gross income.
- Pillar 3aTax-advantaged private pension savings: contributions are deducted from taxable income, withdrawals are taxed separately at a reduced rate.
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Housing
Rent or buy if you want to retire early in Switzerland
Owning a home can lower your retirement spending or lock up the money you need. How to compare, with a worked example for a CHF 1.2 million flat.