Voluntary pension fund savings for housing: A new opportunity from 2025!

The primary goal of voluntary pension fund savings is to ensure financial security in retirement, but a new opportunity will be available to fund members in 2025. Amounts accumulated by September 30, 2024, can be used for housing-related purposes, which can be a significant advantage for those planning to buy, build, renovate their home, or pay off their mortgage early. In this article, we will provide a detailed overview of what purposes this new opportunity can be used for, under what conditions, and how to take advantage of it.

What can you use your pension fund savings for?

According to the regulations, voluntary pension fund balances can only be used for housing purposes, meaning they can be used in the following cases:

Purchase or construction of a home or house
Purchase of a building plot within Hungary
Providing a down payment for a housing loan
Repayment or early repayment of a mortgage
Modernization, renovation, or expansion of a home

This opportunity can therefore be used not only for purchasing a new home but also for renovating an existing one. The amount that can be withdrawn is limited to the savings balance as of September 30, 2024, so it is worth considering how much you have available.

Are you looking for a newly built property? There are still 2 apartments available at the Ezüsthegy Villapark!

If you’re considering purchasing a newly built property, the Ezüsthegy Villapark is definitely worth considering. This project offers premium quality homes in a green, yet close-to-Budapest environment.

The Ezüsthegy Villapark is just a stone’s throw away from the hustle and bustle of the capital, yet it provides a peaceful, nature-friendly setting. The modern, energy-efficient homes perfectly match the latest housing trends, where sustainability and comfort are equally important.

Currently, only two apartments are available in the Villapark, so if you’d like to take advantage of the opportunity to use voluntary pension fund savings for housing purposes, now is one of the last chances to secure a high-quality, newly built home.

Who is eligible for housing-related use?

You can primarily use your voluntary pension fund savings for your own housing needs. However, there is also the possibility to allocate the savings for the housing purposes of a close relative – such as your spouse or child.

This means that if you already own a property but want to assist your child or partner with purchasing a home, you can do so using your savings.

How can you apply for the housing-related payout?

The application process may vary depending on the pension fund, but it typically involves the following steps:

Filling out the application form: You need to complete and submit the official document provided by the respective voluntary pension fund, signed.
Attaching necessary documents: Depending on the purpose for which your savings will be used, you need to attach documents such as the purchase agreement, building permit, bank loan agreement, or invoices related to the renovation.
Submitting the application: The completed documents must be sent to the pension fund, which will then assess your application.

Processing times may vary by pension fund, so it is advisable to inquire in advance about the expected payment time.

What benefits can you gain from this opportunity?

The option for using your savings for housing purposes can be beneficial in several ways.

Tax exemption: You can request the payout tax-free if it fully complies with legal requirements.
Flexibility: You can use it not only for purchasing a home but also for loan repayment or even property renovation.
Utilizing savings: If you have been saving exclusively for your retirement years, you now have the opportunity to use this amount at another stage of your life.
Supporting relatives: You can use it not only for your own purposes but also to support the housing needs of your close relatives.

What should you pay attention to during the application process?

Although the opportunity is highly beneficial, there are a few important factors to consider before applying.

Deadlines: Applications can be submitted between January 1, 2025, and December 31, 2025, so it’s worth starting the process on time.
Savings balance: The maximum amount that can be withdrawn is the balance as of September 30, 2024, so it’s advisable to check this in advance.
Different conditions for each fund: Although the laws are uniform, the details and documentation requirements may vary from fund to fund, so it’s recommended to consult with your own pension fund in advance.

Is it worth using your savings for housing purposes?

When making your decision, it’s important to keep in mind that voluntary pension fund savings are primarily intended for long-term goals. If your aim is to save for retirement, you’ll need to consider whether you’ll still have enough reserves left after using part of it for housing.

However, if you’re currently planning to buy property, renovate, or repay a loan, this could be an excellent opportunity—your savings can be accessed tax-free and used flexibly.

And if buying a new home is on your mind, don’t miss out on the Ezüsthegy Villapark! Only two units remain in this modern, green residential development, so if you’re interested, it’s worth acting quickly.

Összegzés

The year 2025 brings a new perspective for members of voluntary pension funds. Savings that were previously reserved solely for retirement can now be used for purchasing a home, repaying a loan, or renovating a property.

This can be especially beneficial if you’re working toward owning your own home or want to support a family member in doing so. And if you’re looking for a newly built premium property, Ezüsthegy Villapark could be one of the best options—though only a limited number of units remain available!

Contact us!

If we have piqued your interest or if you have any questions, feel free to write to us! Our colleagues will get back to you within one business day.

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