Advance withdrawal of pension fund assets
An advance withdrawal is possible every 5 years – until 3 years before regular retirement. But you need to be careful: Have you purchased any contribution years from your pension fund within the last three years? If so, you cannot withdraw the amount from your pension plan for three years from the date when you purchased contribution years.
Requirements
- You have already accrued retirement assets of more than CHF 20,000 in the pension fund.
- You are not disabled.
- Retirement is at least three years away.
- Your last advance withdrawal took place more than five years ago.
Minimum amount
CHF 20,000
Maximum amount
Until age 50, the maximum amount is equal to your total vested benefits. Afterwards, you receive as a maximum the larger of the following amounts:
- The vested benefits at age 50
- Half of the vested benefits at the time of the pledge
Implications
- A reduction in future retirement pensions
- Reduced benefits on disability or death
- Taxes: The pension fund will automatically inform the Swiss Federal Tax Administration of the advance withdrawal within 30 days. The capital that you have withdrawn in advance must be declared as a lump-sum payment from your retirement assets.
- Sales restrictions in the land register: If you buy your own home with the help of an advance withdrawal, a sales restriction is entered in the land register. If you sell your home at a later stage, the advance withdrawal has to be repaid to the occupational benefits institution.
Repayment
As soon as the conditions for an advance withdrawal are no longer met, the amount must be repaid to the occupational benefits institution.
Procedure
With a request and all required documents (e.g. a valid purchase contract, building permit or extract from the land register, etc.) you confirm to the pension fund that you meet the conditions for an advance withdrawal. If you are married, you also require the written agreement of your spouse.
Recommendation
Protect yourself against reductions in benefits in case of disability or death with occupational disability insurance and / or whole life insurance.
