OSA advice

Question:

I live abroad; can I withdraw second-pillar capital in cash?

Answer:

The situation varies depending on whether someone lives in an EU/EFTA member country or in a country outside the EU/EFTA.
In the case of residency in an EU/EFTA member country, it is no longer possible in principle to withdraw second-pillar capital if the person concerned has compulsory insurance in the country of residence for the risks of old age, invalidity or death. This means, for example, that self-employed persons can withdraw their second-pillar capital to set up in business if the law in their country of residence does not provide for compulsory insurance for the abovementioned risks for the self-employed.
Persons living outside an EU/EFTA member country can request the withdrawal of their second-pillar capital in cash. We recommend finding out about this from the pension fund concerned in good time. It could refuse payment in cash if the person concerned has already reached the age at which the pension fund provides for the possibility of early retirement.
However, it is still possible to use second-pillar capital to finance, build or renovate a main home or to pay off a mortgage even if the property is located in an EU/EFTA member country.
Finally, the non-compulsory part of the second-pillar capital can still be paid out.
If second-pillar capital is withdrawn in cash, we recommend taking out an insurance policy to cover invalidity and death.

Sarah Mastantuoni, Head of the Legal Department