Pension benefits in Switzerland have fallen 16% since 2002

Pensioners in Switzerland are having to make do with less and less money, according to a new study. Benefits from Pillar 2 pensions have fallen significantly over the last 10 years. 

Swiss BVG pension benefits down 40% since 2002

Although benefits from OASI pensions have remained stable in recent years and will even increase next year with the introduction of the 13th month AHV pension, payouts from occupational (BVG) pensions in Switzerland have dropped hugely, according to the VZ Asset Centre’s 2025 Retirement Barometer. 

As Watson reports, the study found that pension fund payouts are a full 40 percent lower today than they were in 2002. It cites a few possible reasons for the drop, including low interest rates, rising life expectancies, and a failed attempt to reform the BVG system. 

Pension benefits are less than what people expect to receive

Accordingly, the VZ Wealth Centre writes that Swiss pensions generally come in a lot lower than the standard rate of 60 percent of a person’s average income during their working life (the so-called “replacement rate”), and are a lot lower than most people expect to receive. “The pensions actually paid out are, on average, about 10 percent lower than forecast,” VZ writes. 

The study found that the average replacement rate is around 51 percent for someone with an annual income of 100.000 francs, and around 42 percent for an income of 150.000 francs. In 2002, for comparison, someone earning 100.000 francs could look forward to a replacement rate of over 62 percent. 

Nonetheless, the study found that the majority of people are optimistic about their retirement: 53 percent of respondents to their survey said they believe they will easily finance their retirement with their pension benefits and assets.