Repayment plan for 2° pillar withdrawal

G

gaintime

New member
Hello everyone!
I would like your advice/opinion.
I withdrew my second pillar for the purchase of my home.
Now I would like to put in place a repayment plan for this withdrawal. Here are my questions.

  • Deposit the money with a monthly payment to the same pension fund to cover the withdrawal over 10-15 years?
  • Pour the money into finpension,viac, truewealth, etc.. (robo advisor) so as to invest it with perhaps better annuities?
  • Split the deposit between pension fund and a robo-advisor listed above?
  • How to invest like a pension fund does but independently?
Put the money into my pension fund could perhaps give me more security but that would imply that again my capital would be locked up and also I am not aware of what and how they manage my capital.

Investing through a robo-advisor would give me much more flexibility on my savings however how much more or less secure is it compared to putting it back into the pension fund?

The time frame in which I will need this capital is approx. 20 years.

Thank you for your suggestions.
 
I am in the same boat (pillar 2 withdrawal for apartment purchase in CH)...

I decided to go with transferring a monthly amount into Truewealth (Robo advisor). Initially, I plan to save up the withdrawn amount over a 6-8 year period (plus some gains🤞), and then I will decide at that late stage whether to pay back (all/something) or continue to keep the savings invested outside the pillar 2. Note: I already have an account with IBKR, however I wanted to keep these "savings" in a separate pot/CHF based.

For me, the main reason to pay the full amount back "earlier" would be to benefit from income tax reduction for "extra" Pillar 2 contributions-> I understand that these extra pillar 2 contributions are not possible until the withdrawn amount is first fully repaid.

EDIT: I also just realized that Baptiste added a new post a few weeks ago with a calculator for pillar 2 contributions vs free assets. It looks interesting (and useful!)
 
Last edited:
This calculator may help:

Second Pillar Contribution - The Poor Swiss

This calculator will tell you whether a contribution to your second pillar makes sense financially or whether you should invest in free assets instead.
thepoorswiss.com thepoorswiss.com

If you are 20 years away from retirement, it is unlikely to be a great move to put your money into your second pillar.
The best is to use a) your third pillar and then b) either a Robo-advisor (FP, VIAC, and TW are fine) or invest by yourself for at least 10 years. Then, you may consider the second pillar.
 
Jimmenico said:
I am in the same boat (pillar 2 withdrawal for apartment purchase in CH)...

I decided to go with transferring a monthly amount into Truewealth (Robo advisor). Initially, I plan to save up the withdrawn amount over a 6-8 year period (plus some gains🤞), and then I will decide at that late stage whether to pay back (all/something) or continue to keep the savings invested outside the pillar 2. Note: I already have an account with IBKR, however I wanted to keep these "savings" in a separate pot/CHF based.

For me, the main reason to pay the full amount back "earlier" would be to benefit from income tax reduction for "extra" Pillar 2 contributions-> I understand that these extra pillar 2 contributions are not possible until the withdrawn amount is first fully repaid.

EDIT: I also just realized that Baptiste added a new post a few weeks ago with a calculator for pillar 2 contributions vs free assets. It looks interesting (and useful!)
Click to expand...
Hi Jimmenico,
thank you for sharing.

You are doing exactly what I started a few months ago.
I am now with VIAC invest. I already had VIAC 3a and for convenience and seeing the zero fees for 2025 I started here with invest.
6-8 years is too short for me to break even however I am not in such a hurry.
My only “fear” is for the family issue where not having a “full” second pillar they might have some discomfort if I were to miss....
In this regard I had drafted a 3a with life insurance. Hold on, I know it was not the best idea but we are talking about several years ago where I had no interest or knowledge in this area...

Maybe for the reason above it might be worth splitting the amount paid out between a robo-advisor and the retirement fund?
 
Baptiste Wicht said:
This calculator may help:

Second Pillar Contribution - The Poor Swiss

This calculator will tell you whether a contribution to your second pillar makes sense financially or whether you should invest in free assets instead.
thepoorswiss.com thepoorswiss.com

If you are 20 years away from retirement, it is unlikely to be a great move to put your money into your second pillar.
The best is to use a) your third pillar and then b) either a Robo-advisor (FP, VIAC, and TW are fine) or invest by yourself for at least 10 years. Then, you may consider the second pillar.
Click to expand...
Hi Baptiste, thks for your reply.

Yes, third pillar is already in place but it is tied to a life insurance policy where the capital I put in will be what I will receive at maturity minus the share for the life part ...
I am considering whether to freeze this contract so I don't lose anything and split the 3rd and a pure risk.

The investment through a robo-advisor is where I want to precisely recover the money taken out of the second pillar.

The idea of investing for at least 10 years through a robo-advisor and then considering whether to put money into the second pillar can certainly be a viable alternative.

thks!
 
Jimmenico said:
I decided to go with transferring a monthly amount into Truewealth (Robo advisor). Initially, I plan to save up the withdrawn amount over a 6-8 year period (plus some gains🤞), and then I will decide at that late stage whether to pay back (all/something) or continue to keep the savings invested outside the pillar 2. Note: I already have an account with IBKR, however I wanted to keep these "savings" in a separate pot/CHF based.
Click to expand...
@Jimmenico what kind of investment have you adopted?
Conservative or aggressive?
Again with the view that this money is retirement money and in a reasoning of investing as a pension fund does, what and how is best to approach it?

@Baptiste Wicht
How can we invest as safely as possible as a pension fund might precisely do?

​

 
gaintime said:
How can we invest as safely as possible as a pension fund might precisely do?
Click to expand...
Well, there are a lot of pension funds with different investment strategies. What they have in common is that they usually invest less then 50% into stocks.

You can choose a pension fund you like, check its strategy and copy it (e.g., with a robo-advisor).

Or you can take a ready-to-use solution which promises "investing like a pension fund" (e.g., finpact, VZ).
 
@Max
Thank you very much for this information.
I was not familiar with finpact, interesting about their approach.
It would be nice to replicate the same thing with VIAC, the current robo-advisor I use....

Thank you very much again!!!
 
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gaintime said:
@Baptiste Wicht
How can we invest as safely as possible as a pension fund might precisely do?
Click to expand...
Most pension funds are very conservative, with around 40% in stocks. Then, they have some government and a lot of real estate.

gaintime said:
It would be nice to replicate the same thing with VIAC, the current robo-advisor I use....
Click to expand...
The real estate is difficult to replicate, but you can set your Robo-advisor to 40% stocks without issues. And then you can even add more real estate with most Robo-advisors.

But you must know that you will be sacrificing a lot of returns.
 
gaintime said:
@Jimmenico what kind of investment have you adopted?
Conservative or aggressive?
Again with the view that this money is retirement money and in a reasoning of investing as a pension fund does, what and how is best to approach it?
Click to expand...
97% Stocks / remaining 3% split between cash and REIT
I am ok with this investment mix risk level, and the last 2-3 years had reasonable returns, though that’s never guaranteed in the future.
The mix can be changed to align with risk tolerance, but I wanted a high exposure to stocks.
 
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