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Switzerland: pension fund annuities fell:
Pension in danger
Pension fund annuities have dropped 40% since 2002 – Switzerland: pension fund annuities fell
The pension funds are under pressure. Therefore, Today, many retirees no longer even receive half of their last salary. Similarly, And the situation is not about to improve.
The annuities fall: the seniors take advantage of the panorama on the Albis.
Photo: Urs power
- Pension fund annuities have decreased by 40% since 2002.
- Average conversion rates fell from 7.2 to 5.27%.
- The lower income classes are less strongly felt rent reductions due to the higher shares of switzerland: pension fund annuities fell the AVS.
In Switzerland, the active population should expect to receive less money once at the retirement. Nevertheless, In 2002. Meanwhile, a 55 -year -old man earning 120,000 francs per year could count on an AVS and LPP pension of around 75,000 francs per year. Meanwhile, Today, this amount falls to 63,000 francs. Similarly, This represents a drop of 16%, according to the 2025 pension barometer of the vz fortune management center.
Currently, most retirees can afford to live well: they have more savings on average than the working population. Therefore, Their pension is also guaranteed. Meanwhile, But the situation promises to be less favorable for the next generations, whose annuities will decrease.
AVS annuities are certainly regularly adapted and increased according to the increase and evolution of wages. Moreover, switzerland: pension fund annuities fell Between 2002 and 2025, they increased by around 22%. For example, And as of next year, the 13th AVS rent will bring an additional increase of 8.3%.
Redistribution to the elderly
But at the same time, the pension fund annuities have dropped significantly. Furthermore, Today they are around 40% lower than twenty years ago, as VZ data shows. Each year in January, the provident certificate reveals how inexorably this annuity promise.
In recent years, most of the pension funds have weakly paid savings assets. At the same time, they have continued to lower the conversion rate which transforms to have it into a rent.
The average conversion rate rose from 7.2% in 2002 to 5.27% last year. Concretely. twenty years ago, a person with an old age switzerland: pension fund annuities fell capital of 100,000 francs at the time of his retirement affected an annual annuity of 7,200 francs. Today, with the same capital, it only receives 5,270 francs.
This drop in the conversion rate is explained by an imbalance: many pension. funds have promised annuities that having the accumulated old age did not allow to cover. Two factors have aggravated this situation over the past twenty years. On the one hand, the interest rate fell. On the other hand, Life expectancy Retirees have laid down three years for men and almost two years for women. By reducing conversion rates, the boxes were able to slow down this redistribution of assets to retirees.
In theory. the Swiss foresight system should guarantee that the AVS and the pension fund cover at least 60% of the last salary together. In switzerland: pension fund annuities fell fact, this objective is less and less achieved.
In 2002, a 65 -year -old man who touched 100,000 gross francs received a rent of just over 62,000 francs per year. The AVS and the pension fund therefore assured him about 62% of his last salary. In 2024, this rate only amounted to approximately 51%.
People who earn their lives well are particularly affected by these drops. Thanks to higher wages. they spared more in the pension fund, especially in the surnobletory field, where the conversion rates have been greatly reduced.
For gross wages of 150. 000 francs, the AVS pension and the pension fund pension still represented 58% of the last salary in 2002, against only 42% currently.
In the switzerland: pension fund annuities fell lower income classes. discounts are less noticeable, because the conversion rates have been less reduced and the AVS represents a much greater part.
The fact remains that the pension funds are today in better financial health. more rarely promise annuities which are not covered by savings assets. Will annuities therefore increase again?
Switzerland: pension fund annuities fell
The trend is always downward
Karl Flubacher. author of the VZ study, tempers this optimism: “Large corrections have certainly been made, the annuities should therefore no longer decrease as strongly as in the past twenty years. But the trend unfortunately remains down. “
Life expectancy actually continues to increase while interest rates are falling downwards. The National Bank has already brought its key rate to zero. Financial switzerland: pension fund annuities fell markets anticipate a return to negative interest rates in Switzerland by the end of the year.
Translated from German by Olivia Beuhat.
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