What are the advantages and disadvantages of an early withdrawal for the purposes of self-employment?

The withdrawal of vested termination benefits for self-employment offers opportunities and risks and should be discussed with an exert in advance.

Advantages:

• The capital for founding a company is available immediately.
• As you are not borrowing capital, your creditworthiness does not need to be checked by a financial institution. In addition, no interest is due on outside capital.
• Taxation of the withdrawal occurs at a reduced rate.

Disadvantages:

• You lose your retirement savings capital and the interest benefits that it would have generated.
• You get no benefits from occupational retirement provision in the case of an insured event.