Early 2nd pillar withdrawal

Banks, Insurances & Third Pillar
1

Hi community,

I was wondering if I reach my FIRE number by mid 40s. How can I withdraw my 2nd and 3rd pillar to retire.

BR

2

Only for a primary residence or if you move abroad.

(And abroad it’s only the over obligatory part in most cases if it’s in the UE).

Otherwise you need to wait for retirement age.

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3

The reasons allowing for early withdrawal of the 2nd pillar are under the “When can you cash in your 2nd pillar savings?” section from the link below. The same applies to 3a with the addition of cashing it out to buy into the 2nd pillar.

One of the many links that come out of a websearch under a few seconds. There is no magic sauce, the cases where it can be withdrawn are clearly defined by law.

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4

Thank you for your quick and informative answer. So I guess one should not count the 2nd and 3rd pillars in FIRE calculations. Also buying into the 2nd pillar to reduce taxes is not that interesting as this money is virtually blocked until the « official » retirement and reduces the person optionality.

5

That’s right, the pension can help if you can take it out early, but otherwise, you allocate that to your retirement years and you have to make sure you have enough in pre-retirement years to last until you can claim it - and allow a buffer in case they change rules to push back retirement date.

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6

Thank you for the contributions. So to get this money I need to go for a couple of years in Dubai (not considering) the withdrawal taxes. Or to use these pillars to buy my primary house and reduce my housing expenses then I can do my FIRE calculations with less housing expenses. But I read the link well if I sell the house I’ll need to pay back the 2 and 3rd pillar plus the taxes on the house appreciation, so double taxation (taxes to withdraw the pillars and tax if I sell the house). All of these scenarios makes less willing to pay the 3rd pillar neither the increasing the 2nd. Any ideas or thoughts are welcomed

7

First, if you consider early retirement I assume 2nd/3rd pillar are not where most of your wealth is.

Why not just consider that they will fund the later part of your retirement and leave them aside for the time being, esp since they can be invested with a lot of freedom now .

Split your planning between early retirement and regular retirement.

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8

It depends on your situation. I’m putting money into the pillars because:

  • They are shielding from wealth tax
  • Income is collected tax free
  • You get a tax deduction when you pay in
  • The tax on withdrawal is small
  • I have enough money to last me until I can withdraw from the pillars
  • In an emergency, I can take out the money using one of the exceptions (e.g. for mortgage payment)
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9

Thank you all for the inputs it’s very helpful.

10

Or within 1 year of becoming self employed

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11

Do you need to then to use that money Int your self employed company or you can use it at your discretion ?

12

At your discretion.

13

May I add a quick additional question: I have 100k in my 2nd pillar, I buyback 20k. How much is now locked for 3 years regarding early withdrawal, 20k or 120k ?

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14

120k

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15

thanks

16

I read that you can’t take the whole amount when you take earlier the 2nd pillar and move to EU country (mandatory and non-mandatory part).
How to calculate which amount to count on?

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17

It’s listed in your pension statement.

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18

on my pension statement it’s very clearly stated that only the recently-bought-in-assets are blocked from early withdrawal for purchasing real estate

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19

Yes only the recently purchased that you cannot withdraw for real estate purchase for 3 years

20

Only 100k is locked for 3 years