In Switzerland, occupational pension plans (2nd pillar) play a central role in maintaining living standards in retirement. For many insured members, a significant portion of their retirement income depends directly on the savings accumulated throughout their working lives, based on the contributions paid and the interest rate credited each year by the pension fund.

According to our latest study of SLI companies, an additional 1% in annual interest increases the retirement pension based on the final salary by an average of two to three times more than a 1% increase in contributions.

The credited interes rate is based largely on the investment performance of the pension funds, but also on the correct balance between…