Home ownership for retirement

Thanks to the possibility of early pension fund withdrawals, retirement is an ideal time to take another close look at buying a property. Not only because you can think about where you want to spend the rest of your life, but also for financial reasons. Anyone contemplating such a step is well advised to think about it in good time.

There are countless reasons to spend more of your well-earned time in the beautiful Engadin after retirement and perhaps even live here permanently, where you have spent so many mountain vacations. If you have always lived in the region, you may want something new that is more in keeping with your work-free life. Perhaps a nice condominium without an elaborate garden, perhaps something with more bedrooms so that children and grandchildren can visit at any time. Regardless of whether you are considering a first or second home, the question of financing always arises. Unfortunately, once you have celebrated your fiftieth birthday, you can no longer use all of your pension fund money to buy a property until your last day at work.

Your opportunity: early withdrawal of your BVG assets

When you retire, you can have at least 25 percent of your accumulated retirement capital paid out. Depending on the pension fund, a larger proportion or even all of it can be paid out. Many pension funds are now happy to pay out a lump sum instead of a pension. However, here comes the big but: there are always application deadlines for this early withdrawal, which can be up to three years. If you miss this deadline, you can no longer insist on a payout. It is therefore clearly advisable to clarify a few years before retirement what options you have and how this is regulated in your personal case.

More attractive than a pension for tax purposes

If you choose the pension, you will pay the corresponding income tax in full for the rest of your life. This adds up over the years, so it is worth considering the payout, regardless of your future plans. If you decide to do so, income tax is only payable once in the year of retirement. And this is independent of the remaining income and at a privileged tax rate. This tax rate is regulated on a cantonal basis and is significantly lower in our beautiful canton of Graubünden than in cantons such as Zurich or Ticino, especially for high BVG lump-sum payments. Moving to the Engadin for retirement is therefore a wise decision, and not just because of the beautiful nature, the fresh air and the many sunny days.

Your further advantages

If you are in the comfortable position of not having to rely on your monthly BVG pension, you are free to decide what you want to do with this capital. You can hardly go wrong by buying a property in our dream region, which is known the world over and is widely appreciated as a tourist destination. After all, homeowners not only have advantages in terms of taxes, they also always have the certainty of a secure investment and the priceless pleasure of being able to spend their lives within their own four walls for as long as they want.

Take your chance, talk to a real estate professional

Since not only the early withdrawal of your BVG assets needs to be well planned, but also the search for a suitable property and perhaps the sale of your existing property takes time, contact a specialist at an early stage. Ginesta Immobilien in St. Moritz will accompany you on this path professionally, personally and with the advantage of local market knowledge and relationships.

“Anyone using their BVG capital to buy a property in the Engadin is doing everything right with a professional partner like us at their side.”
Franco Giovanoli, Head of Marketing St. Moritz