Renovations and refurbishments with pillar 3a

Renovations and refurbishments with pillar 3a

Most Swiss people know that they can take money from their third pillar savings to purchase owner-occupied residential property. However, many do not know that assets from tied pension provision can also be used for renovations and refurbishments that maintain the home's value.

Finance a New Kitchen with Tied Pension Provision

You can finance various projects with money saved in Pillar 3a – from reconstructing the building envelope to installing a new kitchen to replacing the heating system. And this pays off twice: If you renovate or refurbish your own property, you maintain its value and might even benefit from tax advantages. 

Keep Invoices from Architects and Tradesmen

The following rules apply to the early withdrawal of third pillar funds to renovate residential property: Work must be documented by invoices from architects and tradesmen. Invoices cannot be older than one year. Advance withdrawal of Pillar 3a assets is possible only every five years as part of the promotion of home ownership, and only up to five years before reaching the normal retirement age. After that, you are only able to withdraw the total assets from the third pillar account.