The impact of early pension withdrawals on mortgages

Helvetia Holding AG reveals that early withdrawal of pension funds to finance the purchase of a home compromises the ability to manage mortgages in retirement. The study, conducted in Switzerland, shows that a third of homeowners used these funds to purchase their home. Of these, 38% do not plan to fill the resulting financial gap.

The issue of long-term mortgage financing is crucial. To ensure financial viability in retirement, it's essential that household income be three times higher than housing costs. However, with the withdrawal of funds, many homeowners are missing out.

Helvetia advises planning from the age of 50 to avoid having to sell your home upon retirement. Homeowners should consider reducing their mortgage burden or reinvesting in their pension fund, a challenge that requires significant savings.