2nd pillar

In the context of a real estate acquisition, your 2nd pillar (pension fund or vested benefits account) can be used to make up a part of your own funds.

The new regulations require that at least 10% of the purchase price must come from a source other than the 2nd pillar (e. g. cash or your 3rd pillar).

The 2nd pillar can be used in 2 different ways :

Withdrawal of the total or partial amount as equity (amount available for home ownership from your pension fund certificate)

  • Advantages :
    – Decrease in the amount of your mortgage loan and the related charge
  • Disadvantages :
    Payment of a levy tax on the levy
    – Decrease in your pension at retirement
    – Decrease in survivor benefits (spouse’ s/orphans’ pension, death benefit)
    – Your 2nd pillar assets having been withdrawn, they become taxable in terms of assets

Pledge of your 2nd pillar assets

  • Advantages :
    – Optimization of taxation through higher mortgage debt
    – No reduction in pension at retirement
    – No reduction in survivor benefits for survivors
    – No tax on the levy (the tax will be payable at retirement if the capital is withdrawn)
    – Your 2nd pillar assets remain tax-free in terms of assets
  • Disadvantages :
    – Higher (but deductible) mortgage charge
    – Higher amortization (so that you can have the entirety of your 2nd pillar when you retire)

As you will have seen, your 2nd pillar is also a tool for optimizing the structure of your mortgage.

There is no single or universal recipe, the interest of a drawdown or a pledge depends on several factors that our experts will be happy to explore with you in order to find the most appropriate solution for your personal situation.

Our experts hold the AFA Insurance intermediary diploma and the CICERO certification (Certified Insurance Competence), which ensures you professional advice of the highest quality


Hypo Advisors SA is registered at FINMA as non-tied insurance intermediaries (registrer nr 32765)