What are the requirements for a pledge?

In the event of the pledging of retirement provision assets, the following aspects should be taken into account:

• The property must be for your personal habitation.
• A pledge is only possible up to three years before normal retirement age.
• Under 50s can pledge their entire retirement provision balance; over 50s can pledge a maximum of half or the amount of the retirement provision balance upon their 50th birthday.
• A pledge is possible for a property abroad, provided that you live in it yourself and it is your main residence.
• If loan installments cannot be serviced, the pledge will be utilized. In other words: The outstanding loan amount will be settled with your retirement provision assets – and the pledge will be used for the promotion of home-ownership. In this case, your pension benefits will be reduced.