Last update: 28.05.2017 11:44
In the fall, we will be voting on the 2020 pension reform.
The reduction in the conversion rate for pension funds is currently being discussed in many places.
Many people are asking themselves what the reform actually means.
How much could I lose?
Do I have to do anything?
So that we can maintain a certain lifestyle in old age, we are automatically and ineligibly provided with AHV (the 1st pillar, basic protection) and BVG
(the
2nd pillar, occupational benefits).
However, we can rely less and less on the
1. and
2nd pillar, the tied pension provision, will provide 60% of our previous income in old age.
The remaining gap has to be covered by unrestricted
pension provision.
You can find out more about this in a separate article on the 3rd pillar.
In response to increased life expectancy, declining birth rates and the low interest rate environment of recent years, the
1st and
2nd pillar are being reformed.
The pension benefits of the
1st pillar (AHV) are to be expanded.
Occupational pension benefits (2nd pillar) are to be reduced.
The statutory minimum conversion rate in the pension funds is to be reduced in 4 stages by 0.2% each time, from 6.8% to 6.0%.
The additional pension benefits in the
1st pillar are to be financed by a gradual increase in value added tax by 2029.
But what do these figures mean for you?
For some more AHV benefits (1st pillar)
- Existing pensioners will continue to receive a maximum pension of CHF 2,350 (CHF 3,525 for married couples).
Upon retirement in 2019, the maximum pension will increase by CHF 70 (CHF 226 for married couples). - The retirement age for women will be raised to 65, while the age for men will remain unchanged at 65.
- From 2018, VAT will increase by 0.3 percentage points, from 2021 by another 0.3 percentage points and the AHV contribution by 0.3% to finance the improved AHV benefits.
The VAT increase will be borne by you as a consumer, while your employer will bear half of the higher AHV contributions.
For most lower pension fund pensions (2nd pillar)
- The conversion rate, i.e. the percentage rate used to calculate the pension, will be reduced from January 1, 2019.
It will fall from 6.8% to 6.0%.
This means that there will be less monthly pension for existing retirement assets in order to take better account of longevity.
longevity – after all, the pension runs until the end of your life. - The coordination deduction is reduced and made more flexible.
This is the amount on which no BVG savings contribution is paid: a certain amount is deducted from your income and contributions are paid on the remaining amount, from which your future pension is calculated.
is calculated.
Therefore, we pay higher savings contributions with less coordination deduction, increase our retirement assets and thus receive a higher BVG pension later on. - The savings contribution increases from 10% to 11% in the age group from 35 to 44.
This means that we pay more into the pension fund at this age.
In the 45 and 54 age group, the savings contribution will also be increased by 1 percentage point from 15% to 16%.
As is usual with BVG contributions, half of the increase is paid by you and the other half by your employer. - In addition to the higher savings contributions, subsidies from the BVG Guarantee Fund for the transitional generation (45 years) are intended to maintain the pension level of the 2nd pillar.
So for you this means…
- More AHV depending on retirement age
- Higher value added tax as a consumer
- Higher savings contributions in the 2nd pillar to maintain the level of the pension fund pension
The adjustment of the conversion rate in the 2nd pillar is particularly important for you.
With a conversion rate of 6.8 percent, pension fund assets of CHF 500,000 result in a pension of CHF 34,000 per year.
The lower the rate, the lower the pension.
At 6%, we get a pension of CHF 30,000 with the same pension fund assets, CHF 4,000 less per year.
In other words, the daily ice cream has melted away.
| Credit balance | UWS | Pension |
|---|---|---|
| 500,000 CHF | 6.6% | 34’000 CHF |
| 500,000 CHF | 6.0% | 30’000 CHF |
| Difference | – 0.6% | – 4’000 CHF |
Less always sounds like less.
However, retirement reform or not, it depends on whether you have enough.
How much ice cream can and do we want to afford in retirement?
And for how long?
You should get a comprehensive picture of your financial situation.
The Smolio pension check shows you your income in retirement with Pensions 2020.
When personal responsibility becomes more important, only one thing helps: check and act.
Do you want to know what your pension benefits will look like with the reform?
- Check your pension situation
- Take advantage of the opportunities to act.
For example, by buying into your pension fund to get the maximum out of it or by opting for a 3rd pillar and/or unrestricted pension provision.
