Study 2024 - prospect of improved benefits
Every year, the Swiss Pension Funds Study points out important developments from previous years. The past stock market year brought above-average returns for Swiss pension funds. As a result, the coverage ratios of the funds rose significantly. The all-time high of 2021 is already within reach again. Many pension funds are now in a position to grant benefit improvements.
2023 brought above-average returns for pension funds
Higher interest rates on bonds and, in some cases, sharp rises in share prices ensured above-average returns for pension funds last year. The stable situation of the domestic pension funds gives hope for improvements in benefits again. A change is emerging: instead of committing to a long-term increase in the conversion rate, the funds are increasingly focussing on flexible payout models.
Average return of 5.1%
Pension funds achieved an average return of 5.1% on assets in 2023. The 10-year average was 3.5%.
Successful funds pay better interest
The best funds achieved a net performance of 5.43% and paid a high 3.70% interest on retirement assets (vs. an average of 2.44%).
Third contributor as the main pillar
Since 2004, the markets have contributed a cumulative 38% to occupational pension assets.
Light on the horizon
The conversion rate, which has been falling for years, is showing signs of bottoming out. A value of 5.23% is expected for 2029.
Benefit improvements in sight
Only 14% of pension funds will grant benefit improvements in 2024 - mostly in the form of one-off payments.
Ready for part-time work
Around 90% of pension funds have already responded to the changes in employment biographies with part-time work and have adjusted the coordination deduction to current requirements.
