Pension

Yes. You can use the funds in your Pillar 3a account as well as your occupational pension fund (Pensionskasse) to purchase a house or apartment. There are two ways to use these funds: pledging them or withdrawing them in advance.

However, pension assets may only be used for owner-occupied residential property—meaning your main residence and primary place of living. A holiday home, investment property, or second home is not eligible.

With an early withdrawal, the money is taken out of your Pillar 3a or pension fund and used as equity for your home. This amount is taxed—approximately 3–5% for pension fund withdrawals and 5–10% for Pillar 3a withdrawals, depending on your canton and the amount.

With a pledge, no taxes are due. The assets in your Pillar 3a or pension fund remain fully invested and continue to work for you. Instead of withdrawing the funds, the mortgage amount is increased by the pledged portion of your pension assets. The pledge is registered in the land register and must be settled when the property is sold. Your pension benefits remain unchanged—and no taxes are charged.

An early withdrawal from Pillar 3a or the pension fund is generally allowed every five years.
This time restriction applies per pension institution. For example, if you have several Pillar 3a accounts at different banks or multiple institutions in the second pillar (e.g., your active pension fund and a vested benefits account), you may withdraw from each of them independently every five years.

There is no minimum contribution period. You do not need to have contributed for five years prior. The five-year rule applies only to the frequency of withdrawals, not to how long you have been contributing.

The use of pension assets for home ownership (WEF) is generally allowed until three years before retirement.
There is also an important limit at age 50:

• Up to age 50, you may withdraw your full pension fund balance.

• If you are older than 50 at the time of purchase, you may withdraw the higher of:

  • the amount you had at age 50, or

  • half of your current pension fund assets.

Early withdrawals from Pillar 3a or pension funds are taxed separately from regular income at a reduced tax rate, which varies by canton.

Example:
For a withdrawal of CHF 250,000 in the City of Zurich, the tax burden for a married, non-religious person is approx. 4% (around CHF 11,000).

General guidelines:

• Pension fund: approx. 3–5%

• Pillar 3a: approx. 5–10%

The exact tax depends on your canton and the withdrawal amount.

Yes. You may repay the withdrawn amount at any time until retirement or until another pension event occurs.
A major advantage: the taxes paid at the time of the withdrawal will be refunded to you when you repay the amount.

Swiss law (BVG) allows insured persons to use their pension assets for owner-occupied residential property. Funds may be used for:

• Purchase or construction of a home

• Renovations or improvements that increase the value of the property

• Repayment of a mortgage (amortisation)

You may not use pension funds to:

• Pay mortgage interest

• Cover ongoing maintenance costs

• Purchase undeveloped land without an approved construction project

• Buy a holiday home, either in Switzerland or abroad

Using pension assets can help make home ownership possible. However, it is important to consider your overall retirement planning.
Your MY HYPOTHECA advisor can show you the advantages and disadvantages so you can make an informed decision. With the right information, you can confidently determine whether using these funds for your home purchase is beneficial for you.