You will receive a 1st pillar pension from the AHV as soon as you reach retirement age. You are generally also entitled to a pension or, optionally, to a one-off capital payment (lump sum payment) from the 2nd pillar or pension fund.
The payment in the form of a pension secures you a lifelong, guaranteed pension. The motto here is security over flexibility.
If you draw BVG capital, you will dispose of the funds immediately and will be able to use them as you wish. The motto here is flexibility over security.
Retirement in accordance with the law