Pension funds: excellent returns in 2024, but with large disparities

Post on: 03.06.2025

Thanks to the Positive financial market performance, Swiss pension funds posted excellent returns in 2024, but not all policyholders benefited in the same way. The differences between the institutions are in fact significant, according to what emerges from the 25° periodic study of Swisscanto, a brand of Zü rcher Kantonalbank (ZKB).

Average returns at 4.3%, but the gap between funds remains wide

On average, pension capital was remunerated with an interest rate of 4.3%, the second best value in the last twenty years after 2021. For comparison, the legal minimum rate set by the Federal Council for compulsory pension provision è Of 1.25%.

However, 10% of the least generous funds paid only the 1.75% to its policyholders, while 10% more than 10% correspondent an exceptional 8.25%. This shows how much the return obtained by policyholders can vary, even at the within the same social security system.

Solid reserves and coverage at 117%

L analysis Swisscanto also indicates that pension funds' reserves have grown thanks to the positive performance of the markets. At the end of 2024, the average coverage ratio was 117%, the second most important level high of the last 25 years. This is encouraging, especially considering the sudden recovery following the April 2025 crisis which had hit the stock markets.

Increasingly; pensioners choose the capital

Another interesting fact concerns the preferences of new pensioners:

• 38% chose the payment of the entire capital
• 39% opted for a pension
• 23% opted for a mixed solution

According to Swisscanto, the choice of capital seems motivated by fiscal factors: the prospect of a possible increase in the tax on the withdrawal of capital pushes more and moreù people prefer this option. Surprisingly, the conversion rate did not have a major impact on the choice: even institutions with low rates did not see a significant increase in capital withdrawals.

More Flexibility and financial skills among the reasons

The study also points out that the preference for capital è moreù widespread among those working in the financial and insurance sectors, probably due to greater familiarity; with investments and the desire to manage one's assets independently.