- BenutzernameMoneyland User Questions
- Status Member
- Registriert seit1/27/17
- Beiträge2142
February 21, 2017, 4:16:31 PM
How does indirect amortization affect my retirement savings? Are there any negative effects?
Negative effects of indirect amortization
Here you will find the right answers
About Moneyland Forum
The moneyland.ch forum lets you exchange knowledge on numerous topics related to money and get answers to your questions at any time. Join forum users and experts in discussions relating to banking, investment, insurance, retirement, telecom and everyday money topics.
Show categories
- BenutzernameMoneyguru von moneyland.ch
- OrtSchweiz
- Status Expert
- Registriert seit8/4/15
- Beiträge4002
February 22, 2017, 1:39:21 PM
Greetings,
When you choose to pay off a mortgage using indirect amortization, you have to deposit enough money to cover your second mortgage into your retirement account before the account is closed.
When you close your retirement account, the relevant amount of money must be used to amortize your second mortgage in full.
Making mortgage amortization payments into a 3a retirement account may use up a substantial portion of your annual pillar 3 retirement savings allowance. You can make additional contributions towards actual retirement savings as long as total deposits do not surpass the annual limit. The amount you contribute above mortgage amortization payments is not pledged towards your mortgage, and you can use that part of your 3a assets to fund your retirement.
Best regards from Moneyguru
More on this topic:
Indirect amortization explained
Mortgage comparison
Mortgage affordability explained
