- A withdrawal gives you cash, but it is taxed and reduces your pension until you repay it.
- A pledge leaves your pension fund in place as security: no tax, no lower pension.
- The bank requires 10% of real own funds, which do not come from the pension fund.
Withdrawal or pledge: the comparison
A withdrawal makes sense mainly when you are short of deposit. If you already have your own funds, a pledge protects your retirement better.
| Early withdrawal | Pledge | |
|---|---|---|
| What you get | Cash for the deposit | Security: the bank lends more |
| Tax | Yes, at a reduced rate | None |
| Your pension fund capital | Falls by the amount withdrawn | Stays intact and earns interest |
| Your future pension | Reduced until repaid | Unchanged |
| Your mortgage debt | Smaller | Not reduced |
| The risk | A permanently lower pension | The bank can enforce the pledge if you stop paying |
What a withdrawal costs your pension
A withdrawal never repaid follows you through retirement. Example: 100'000 francs withdrawn at 40 mean about 770 francs less pension every month at 65, or more than 180'000 francs over 20 years of retirement. If you repay before retirement, the pension is restored.
The calculation in detail
| At 65 | Without withdrawal | With withdrawal |
|---|---|---|
| Pension fund capital | ~CHF 409'000 | ~CHF 273'000 |
| Pension per month | ~CHF 2'320 | ~CHF 1'550 |
CHF 300'000 in the fund at 40, CHF 100'000 withdrawn and never repaid, 1.25% interest a year, conversion rate of 6.8%, no new contributions. With a lower conversion rate, the gap in francs is smaller, but the logic is the same.
The rules for early withdrawal
Withdrawal is only possible for your main residence, with your spouse's written consent.
- No second home and no property to rent out.
- One withdrawal every 5 years, of at least 20'000 francs.
- Before 50, up to all your assets. After 50, the higher of your assets at 50 and half your current assets.
- No more withdrawals in the 3 years before retirement.
The withdrawal is taxed separately, at a reduced rate, and the tax is deducted before the payment. On 100'000 francs, expect several thousand francs depending on the canton. Build it into your budget before you sign: the FTA calculator, under capital benefits, gives you the amount.
If you sell the home, you must repay the withdrawal, unless you buy another main residence within 2 years. And while it has not been repaid, no more deductible pension fund buy-ins: see the buy-in.
What the bank requires
Two rules: a 20% deposit, at least half of it outside the pension fund, and notional costs that do not exceed a third of your income. For the second, the bank calculates with a notional 5% rate, plus amortisation and maintenance. Example: for a 900'000-franc purchase, you need about 90'000 francs of real own funds. And a gross income of about 162'000 francs.
The bank's calculation, for a CHF 900'000 purchase
| Deposit and mortgage | Amount |
|---|---|
| Minimum deposit (20%) | CHF 180'000 |
| Of which outside the pension fund (10%) | CHF 90'000 |
| Possible share from the pension fund (10%) | CHF 90'000 |
| Mortgage (80%) | CHF 720'000 |
| Notional costs | Per year |
|---|---|
| Notional interest (5% of the mortgage) | CHF 36'000 |
| Amortisation (1% of the price) | CHF 9'000 |
| Maintenance (1% of the price) | CHF 9'000 |
| Minimum gross income (costs × 3) | CHF 162'000 |
"Is a pledge enough for my financing?" and "What is the exact tax on this withdrawal in my canton?" Banks often suggest the withdrawal first, as it reduces their risk more.
Going further
You can combine both. A partial withdrawal to complete the deposit, and a pledge on the rest for better financing: you limit both the tax and the loss of pension.
The 3a can also be used to buy. It can be withdrawn for your main residence, also every 5 years, and counts for the bank as own funds outside the pension fund.
Repaying later is still possible. You can pay the withdrawal back into your fund until retirement, in instalments of at least 10'000 francs. Your pension is restored and the tax paid on withdrawal is refunded.
The imputed rental value is going away. With its abolition, in 2028 at the earliest, mortgage interest will mostly no longer be deductible: the buy-or-rent calculation changes. See buy or rent.
Buy, or rent and invest?Compare both paths over 25 years with your figures.
Open the calculatorYour next step
To do, at your own pace:
Path “Tax and property” · step 4 of 5
Frequently asked questions
Can I withdraw all my pension fund to buy my home?
Before 50, yes, all of it. After 50, at most the higher of these two amounts: your assets at 50, or half your current assets. Minimum CHF 20'000 per withdrawal, one withdrawal every 5 years.
Is the withdrawal taxed?
Yes, separately from your other income, at a reduced rate that depends on the canton and the amount. On CHF 100'000, expect several thousand francs. The FTA calculator (capital benefit) or your tax office gives the exact figure.
Do I have to repay it if I sell the home?
Yes, as a rule, unless you reinvest in another main residence within 2 years. The tax paid on withdrawal is then refunded on request, without interest.
Does a pledge reduce my pension?
No. Your assets stay in the fund and keep earning interest. The pension only falls if the bank has to enforce the pledge, if you default on payments.
Does my spouse have to agree?
Yes. The written consent of your spouse or registered partner is required for a withdrawal as well as for a pledge.
Can I repay later to restore my pension?
Yes, voluntarily, in one or more payments (CHF 10'000 minimum each), until retirement. The pension is then restored, and the tax paid on withdrawal is refunded.
Sources: BVG / LPP art. 30c to 30g (home ownership promotion) ; WEFV / OEPL (ordinance on home ownership promotion) ; FSIO ; FTA, taxation of capital benefits ; FINMA and SBA, guidelines on mortgage equity. ViaVest calculations.