Retirement in the right home: making the dream come true

As you slowly approach retirement, you start to think about how you want to organize your life in the future. It’s not uncommon for your current living situation to no longer really fit in with your plans for this well-earned period of retirement. For example, because you would rather go on regular trips and take part in cultural events than continue to spend most of your free time in a garden that requires a lot of effort to maintain – a nice apartment in Chur would suit you much better than the large house in Thusis. Someone else might prefer to move from the practical attic apartment near Maienfeld station to a property with a garden in a picturesque little village, where they can have peace and quiet and the grandchildren can come over to play. So everyone has their own wishes that they want to fulfill. The good news is: with a clear idea and timely preparation, the chances of success are good.

Path to the goal: early withdrawal of BVG assets

When you retire, you can have part of your accumulated retirement capital paid out. Depending on the pension fund, this is often 25 percent or more. With some pension funds, you can even withdraw all of it. Now 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 advisable to clarify your options a few years before you retire.

More attractive than a pension for tax purposes

And this is independent of the remaining income tax rate. This tax rate is regulated at cantonal level and is significantly lower in the canton of Graubünden than in other cantons.

If you opt for a monthly retirement pension, this is taxed as income on an ongoing basis, which can lead to an accumulated tax burden over the years. A one-off early withdrawal of BVG retirement capital for owner-occupied residential property, on the other hand, means that the capital is subject to income tax once in the year of payment. However, there are a few points to bear in mind. In addition, the actual amount of tax depends on the canton of residence – in Graubünden the tax on one-off capital withdrawals is generally lower than in many other cantons. When deciding between a pension and an early withdrawal, we recommend individual tax and financial planning, ideally in cooperation with pension fund and Real Estate experts, to ensure the long-term affordability of the property purchase.

A good decision even in old age

Anyone who is in a comfortable position and already owns their own home and can sell the property for this step or pass it on to the next generation, or who is not dependent on the full monthly BVG pension, is therefore free to decide what they want to do with their own capital. Buying a property can therefore be well worthwhile. 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 enjoy life within their own four walls for as long as they want.

Good planning is almost a winner

Since not only the early withdrawal of BVG assets needs to be well planned, but also the search for a suitable property and perhaps the sale of an existing property takes time, it is advisable to consult a specialist at an early stage.