Find out what aspects of financing a home change once you’re over 50 and what particular topics you need to pay attention to.
Consider what your financial situation will be once you’re retired and review your mortgage strategy. The sooner you plan how to finance your home in future, the more relaxed you can be about retiring.
Once you turn 50, the rules change concerning early withdrawal or pledging of pillar 2 retirement funds.
Unless your retirement fund states otherwise, any early withdrawals must be made no later than three years before you are entitled to receive the pension.
If you’re over 50 and you want to buy your own home with money in pillar 2, the maximum you can withdraw are the vested benefits you would have had at age 50 – or half of the vested benefits at the time of withdrawal. The higher of the two amounts can be withdrawn or pledged.
We'll be happy to advise you about early withdrawals: visit us at a branch near you, and bring along your pension fund statement if you can.
After you retire, your monthly living costs should not exceed 33% of your income. Remember that:
- your income after retirement will likely be lower than it was when you were working.
- your second mortgage will usually be paid off by the time you retire, thus reducing annual interest charges and removing the repayment obligation.
Revise your strategy before you retire. In a personal consultation we’ll analyze your current and future income and expenditure, providing you with a picture of your financial situation after you retire. Based on the result, we’ll clarify whether you need to act and if there is any potential for improvement.
UBS offers different solutions for improving your financial situation and securing your standard of living.
Our retirement solutions allow you to grow and optimize your wealth in a targeted fashion and to prepare for retirement.
Find out, for example, how you can build up your retirement savings in a tax-efficient way with the UBS Fisca account.
What do I need to consider when having a mortgage in retirement?
- Analysis of your current income situation
- Examination of the affordability after you’ve retired
- Rules on early withdrawal and pledging
- Optimization of your financial situation
Our experts are here for you – we look forward to speaking with you.