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Withdrawing your vested benefits Withdrawing your vested benefits
You can withdraw your vested benefits held in a vested benefits account subject to certain conditions. We explain the conditions and what you should look out for.
You can withdraw your vested benefits held in a vested benefits account subject to certain conditions.
The reasons for paying out vested benefits
You can withdraw your vested benefits no more than five years before reaching the statutory retirement age 65 but also no more than five years afterwards. However, under certain circumstances you may also use your vested benefits for other purposes. When you can withdraw your vested benefits is regulated by law and is explained below.
Self-employment
Self-employment
Do you want to start your own business? You can use your vested benefits as seed capital within a year of taking up self-employment. To do this, you need the confirmation of acceptance from the AHV compensation fund or the accident insurance scheme.
Residential property
Residential property
If you are planning to buy residential property for your own use or to build a house, you can withdraw your vested benefits for this purpose. Renovations to residential property that maintain or increase its value may also be financed using vested benefits. However, you may not use them to finance holiday homes or second homes.
> Download the Application for advance withdrawal for owner-occupied residential property
Moving abroad, it depends on the country
Moving abroad, it depends on the country
If you move to an EU country, Norway or Iceland you can only withdraw the extra-mandatory part of your vested benefits, provided you are still subject to compulsory social insurance in that country. If this is not the case, you can withdraw your entire vested benefits. You can withdraw your entire credit balance when you move to a third country, with the exception of the Principality of Liechtenstein. A lump-sum withdrawal is not possible for the Principality of Liechtenstein.
De minimis
De minimis
If your credit balance is less than an employee’s annual contribution to your former pension fund, you can withdraw your credit balance.
Disability
Disability
If you receive a full disability pension (degree of disability of 70% or more), you are entitled to withdraw your vested benefits. To do this, you need a legally-binding ruling from the Federal Disability Insurance scheme.
Death
Death
In the event of death, the vested benefits will be paid out in accordance with the legal requirements pursuant to Art. 15 of the Vested Benefits Ordinance. The legal requirements allow the beneficiary clause to be amended within a narrow framework.
Repaying your mortgage
Repaying your mortgage
You may use your vested benefits to repay a mortgage, which is also referred to as amortisation.
Participation in a housing cooperative
Participation in a housing cooperative
If you want to buy a flat from a housing cooperative, you often have to buy share certificates from them. You can finance these certificates with your vested benefits.
Divorce
Divorce
In the event of a legally binding divorce granted by a Swiss court, we will split the pension entitlement equally.
Operational investments
Operational investments
If you are self-employed as your main occupation and would like to make operational investments for this purpose, you will generally be able to withdraw your pension capital.
Withdrawing from a vested benefits account: do I have to pay taxes?
If the pension assets are in your vested benefits account, you don’t have to pay tax on them. If you withdraw your assets, you will be subject to capital gains tax. The capital here is taxed separately from other income at a reduced rate.
If capital withdrawals are made from the 2nd and 3rd pillars in the same year, they are added together. It is therefore worthwhile not to withdraw everything in one year and to plan a staggered withdrawal. According to the law, you may hold up to two vested benefits accounts at the same time. However, splitting your benefits into two accounts is only permitted when leaving the pension fund, and is not permitted afterwards.
