Swiss Pension Fund Study 2020: pension funds remain secure, but returns will continue to decline

The most recent pension fund study by Swisscanto Pensions Ltd. reveals enormous performance discrepancies, with returns ranging from 3.0% to 19.3%. This is particularly significant, since higher capital gains offer a way out of the political impasse: according to the study, an additional annual return of just 0.6% could, for example, render the politically controversial increase in the retirement age unnecessary. The benefit reductions resulting from a decrease in the minimum conversion rate from 6.8% to 6.0% could also be offset, meaning that the pillar 2 pension reform would be more likely to gain public approval.

Read full press release (Source Swisscanto Pensions Ltd.)