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Owning a home - an attractive solution for your pension?

The different reasons why owning your own home can benefit your pension.

More and more people in Switzerland are looking at home ownership as an attractive investment solution for their pension provision. Indeed, home ownership can be an effective way of investing capital and building long-term assets.

The financial benefits of home ownership

One of the most obvious financial advantages of home ownership is that, in times of low-interest rates, the monthly payments can be lower than the rent for an equivalent property. As a result, homeownership can save you money in the long term. You should also bear in mind how property prices change over time. Property in the most sought-after regions of our country has doubled in value since the 2000s. However, history teaches us that specific periods have been more complicated for homeowners, with interest rates at over 7% and prices in freefall during the 1990s.

Investing in your pension through home ownership

In addition to the direct financial benefits, home ownership can also be an effective way of investing in your pension. More and more Swiss people can finance part of their home through their occupational and private pension provision. By supporting their private pensions early enough, they can reap considerable rewards after just a few years. The associated higher interest rate than on a savings account means that pension capital grows faster. Moreover, the possibility of deducting the annual payment into a 3a pension plan from taxable income makes saving for retirement even more attractive.

Except for tied pension plans

In the case of tied pension pension, some exceptions allow you to withdraw money invested in your pension account in advance to finance home ownership. It is also possible to repay your mortgage indirectly by placing the agreed repayment amount in a 3rd pillar pension account.

Covering your financial capacity with insurance

In addition to banking services, individual insurance solutions are also available for future homeowners. These insurances can cover risks relating to construction, the building, loss of earnings or death, and repayment of the mortgage.