What to use as a pay out: Pension fund or 3rd pillar?

You can make advan­ce with­dra­wals from both the pen­si­on fund and the 3rd pil­lar for the purcha­se of your own home. This is wit­hin the frame­work of the Home Ownership Pro­mo­ti­on Pro­gram (WEF).

Withdraw from the pension fund versus the 3rd pillar?

Arguments in favour of drawing pension fund benefits

The advan­ta­ge of drawing from the pen­si­on fund is that you can bring the advan­ce with­dra­wal back later and rec­laim the tax paid. In con­trast to the pen­si­on fund, you can­not reinvest pil­lar 3a money once it has been with­drawn into the 3rd pil­lar. The lump-sum with­dra­wal tax is defi­ni­ti­ve after an advan­ce with­dra­wal from Pil­lar 3. In addi­ti­on, you must pay tax on the money in your pri­va­te assets from the time you with­draw it. The lon­ger your invest­ment hori­zon, the more tax you can save by repay­ing the advan­ce with­dra­wal to the pen­si­on fund.

Arguments in favour of drawing on the 3rd pillar

The fact that you can no lon­ger make volun­ta­ry purcha­ses into the pen­si­on fund after an ear­ly with­dra­wal of pen­si­on fund assets speaks in favour of drawing Pil­lar 3 bene­fits. You can only make volun­ta­ry purcha­ses again once you have repaid the advan­ce with­dra­wal to the pen­si­on fund. If you want to make volun­ta­ry purcha­ses in the years after the WEF with­dra­wal, we recom­mend that you with­draw the 3rd pil­lar ins­tead of the pen­si­on fund.


With­dra­wal pen­si­on fundWith­dra­wal
3rd pil­lar
Long invest­ment hori­zonx
Pen­si­on Fund-Purcha­ses desi­redx

Check pension protection

When with­drawing money from the pen­si­on fund, we recom­mend that you have your pen­si­on pro­tec­tion checked. It is pos­si­ble that your bene­fits for the risks of death and disa­bi­li­ty will be redu­ced by a with­dra­wal. At best, it makes sen­se to take out addi­tio­nal cover in this case. We recom­mend that you cla­ri­fy this point with your pen­si­on insti­tu­ti­on.

Home ownership requires equity capital

Anyo­ne who wants to buy resi­den­ti­al pro­per­ty has to dig deep into their pockets. It is com­mon to tap most savings in order to rai­se the necessa­ry equi­ty capi­tal. If the­se are not suf­fi­ci­ent, pen­si­on pro­vi­si­on often comes into play as well. Pen­si­on assets can eit­her be pled­ged or with­drawn in advan­ce.