Use your retirement savings to finance your own home.

You can use the pension savings you have built up in Pillar 2 and Pillar 3 to finance an owner-occupied residential property. You can either withdraw or pledge your retirement savings for this purpose. This does not include financing for vacation houses and apartments and second homes.

To give you a better overview, we have summarized the advantages and disadvantages of financing your home using Pillar 2 or Pillar 3 savings via the options of early withdrawal or pledging.

Pension fund (Pillar 2) UBS Fisca (Pillar 3)
Early withdrawal Pledging Early withdrawal Pledging
Advantages
  • Smaller mortgage,
    lower interest payments
  • Additional tax savings
  • Full entitlement
    to Pillar 2 plan benefits
    remains in place
  • Preferential interest rate on financing
    above 80%
  • Smaller mortgage,
    lower interest payments
  • Additional tax savings
  • Capital remains in the
    Pillar 3a account and therefore
    earns interest and increases in value
Disadvantages
  • No additional
    tax savings
  • Less cash available
    because of tax on amount withdrawn
  • Creates a
    pension provision shortfall
  • Larger mortgage,
    higher interest payments
  • No additional
    tax savings
  • Less cash available
    because of tax on amount withdrawn
  • Larger mortgage,
    higher interest payments

Do you have any questions about retirement savings?

We’ll be happy to advise you at one of our branches or at our
UBS Service Line at 0848 848 054.

Arrange an advisory consultation

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