Selling property purchased with pension

Finance, Taxes, Banking, Insurance and Retirement
1
Ten years ago I purchased a property and paid a few hundred thousand of the price with my pension.

in Ten years time I can officially retire? perhaps less?

Now should I sell my house at that point? Do I have to give the money back to the pension company? So they can subsequently pay it slowly back to me? or do I get to keep the lump sum?

I ask cause I think the pillar will be worth no more than 1K a month at the most, and I have perhaps 100K in the 2nd pillar at this point, figures that will surely leave me on the breadline within a few years.

2

Far as I know any money used from your pension fund has to be paid back.

3
Only if you are not retired.

Tom

4
First I would calculate exactly what your income gap if you do nothing (maybe with the help of a pension planner).

One option is to pay some additional money to fill the hole in your 2nd pillar in the next 10 years, you can also do additional buy-ins after you have paid back the sum you withdrew earlier, the system is flexible. This way you don't have to sell the house if you don't want to.

If you sell prior to retirement, you have to pay back only the money that you are not using to buy your next property.

5

Really? So if we sell up when hubby retires we get to keep it?

6
You can keep the house,

way it works is that at the time of retirement you have less than 66% of the house value as mortgage. You do not need to sell it however you will need to deal with less monthly pay from the found.

Question is of course how much does it cost you to maintain property, pay monthly costs and mortgage and live with much lower income. That's the risk you took taking out Pillar 2a money.

Often there is also no need to keep large house at high cost ..

7
Well whether you get it as one sum or per month, it not going to change the outcome.....

8
An alternative could be to sell the house for a reverse mortgage.

9

he said he used a few hundred thousands, that would make a difference if put back into the 2nd pillar

10
Not really, coming up to retirement with the buy in being calculated at the current rate.

11

could you elaborate more? Are you talking about conversion rate?

12
Downsizing in Switzerland would attract capital gains tax on any profit...

13
yes