Thanks to the possibility of early withdrawal from the pension fund, retirement is an ideal time to once again intensively consider the purchase of a property. Not only because you can think about where you want to spend your retirement, but also for financial reasons. Anyone considering such a step would be well advised to deal with it in good time.

There are countless reasons to spend more of your well-deserved time in the beautiful Engadine after retirement, and perhaps even to live permanently here, where you have spent your mountain holidays so many times before. Those who have always lived in the region may at best have a desire for something new that is more in keeping with their everyday life away from work. Maybe a nice condominium without a lavish garden, maybe something with more bedrooms so that children and grandchildren can visit at any time. Regardless of whether you are thinking about a first or second home, there is always the question of financing. Unfortunately, once you have celebrated your fiftieth birthday, you can no longer use all your pension fund money to buy a property until your last day of work.

Your chance: the early withdrawal of your BVG assets

Those who retire can have at least 25 percent of their accumulated retirement capital paid out. Depending on the pension fund, a larger share or even all of it can be paid out. Many of the funds are now happy to pay out instead of a pension. But now comes the big problem: there are always registration 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. So it is clearly advisable to clarify a few years before retirement what options you have and how this is regulated in your personal case.

More fiscally attractive than a pension

Those who choose the pension will pay the full amount of income tax on it for the rest of their lives. This adds up over the years and so, regardless of future plans, it is worth considering the payout. If you decide to do so, the income tax is only due once in the year of retirement. And this is independent of the remaining income and also 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 in the case of high BVG capital payments. So moving to the Engadine for retirement is a wise decision, and not just because of the wonderful nature, fresh air and many sunny days.

Your further advantages

Those who are in the comfortable position of not being dependent on the monthly BVG pension therefore have the opportunity to freely decide what they want to do with this capital. You can hardly go wrong with buying a property in our dream region, which is known worldwide and appreciated far and wide as a tourist destination. Because 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 early on. Ginesta Immobilien in St. Moritz accompanies you on this path professionally, personally and with the advantage of local market knowledge and relationships.

«Anyone who uses their BVG capital to buy a property in the Engadine is doing everything right with a professional partner like us at their side..» 
Franco Giovanoli, Head of brokerage St. Moritz