The Swiss Federal Act on occupational old-age, survivors’ and disability pension (BVG) supports the purchase of residential property. This means that you can withdraw your pension fund assets early to purchase residential property, to build your own home or to repay a mortgage loan.
Every insured person who has assets of at least CHF 20,000 in his or her retirement account can withdraw or pledge an amount of up to the total pension fund assets for owner-occupied residential property, i.e. to offer to a bank as collateral. After the insured person’s 50th birthday, the amount of this sum is limited by law.
If an advance payment is made, your retirement assets will be reduced as per the regulations of the Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe. The benefits to which you are entitled upon reaching retirement age are correspondingly lower. The risk benefits in the event of disability or death are not affected by such a reduction.
Although your retirement assets are not taxed, the reduced tax rate for lump sums applies to an amount taken in advance in Switzerland during the first year; it is treated as part of the assets thereafter.