Financing is the first and last hurdle to overcome when acquiring residential property. If the available funds are insufficient, an advance withdrawal or pledge of Pillar 2 assets may well be an alternative worth considering. This can open up a range of options, provided affordability is not endangered.
The law promotes the acquisition of owner-occupied residential property using money from your occupational benefits insurance. However, this right comes with certain obligations and restrictions.
In the context of the statutory promotion of homeownership, the following means may be used for financing the purchase of residential property:
Permitted purposes of use:
Non-permitted purposes of use:
Good planning is needed if you wish to realize your dream of home ownership. Including financially. What’s important is to realistically estimate the costs, and to understand the implications and the correct procedure. The first of two possibilities for raising capital is advance withdrawal from your pension fund.
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.
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:
As soon as the conditions for an advance withdrawal are no longer met, the amount must be repaid to the occupational benefits institution.
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.
Protect yourself against reductions in benefits in case of disability or death with occupational disability insurance and / or whole life insurance.
Anyone who works for a company whose pension fund is managed by AXA can benefit from many advantages. Because the insured employees have access to the myAXA pensions portal. Thanks to this online portal, you - as an employee - can take the planning of your pension provision and the calculation of possible future scenarios into your own hands. Otherwise you have to ask your employer or your HR department for the relevant information.
From the end of 2017 or at the latest at the start of 2018, the insured in an AXA pension fund will benefit from the advantages of the new pensions portal on myAXA. You will receive a letter from AXA with the access data that allows you to register with myAXA with just a few clicks.
Yes, you can withdraw funds in advance to preserve the value of your home.
An advance withdrawal can be used only to finance the part of the property in which you live.
A married couple is planning to buy a house valued at CHF 500,000. Each partner wants a 50% share of the property. Each spouse can withdraw a maximum of CHF 250,000, even if their total available vested benefits are higher. If the amount of vested benefits is lower, they can withdraw only up to the total amount.
No. Advance withdrawals are possible only if the jointly owned property is split among spouses or registered partners.
Yes. Here too the maximum amount is the larger of:
No. There is no minimum for advance withdrawals from vested benefits policies and accounts.
No, unfortunately that's not possible.
Yes, if the family (spouse/children) of the person in question lives in the house and the applicant regularly spends time there.