{"id":8801,"date":"2017-06-27T18:15:19","date_gmt":"2017-06-27T16:15:19","guid":{"rendered":"https:\/\/www.smolio.ch\/wissen\/pension-provision-2020-are-you-a-winner-or-loser-of-the-reform\/"},"modified":"2017-06-27T18:15:19","modified_gmt":"2017-06-27T16:15:19","slug":"pension-provision-2020-are-you-a-winner-or-loser-of-the-reform","status":"publish","type":"post","link":"https:\/\/www.smolio.ch\/en\/wissen\/pension-provision-2020-are-you-a-winner-or-loser-of-the-reform\/","title":{"rendered":"Pension provision 2020.\nAre you a winner or loser of the reform"},"content":{"rendered":"Lesedauer<\/span> 4<\/span> Minuten<\/span><\/span>

Answering this question is anything but trivial.
\nWhether you consider yourself a winner or a loser depends on personal factors.
\nFor example, your age, gender and income.
\nAnd last but not least, your attitude.
\nHow do you see yourself? <\/p>\n

<\/p>\n

Basically, everyone wins because it is a step in the right direction and improves the financing of pension obligations, i.e. the system.
\nWhat exactly is happening: <\/span><\/p>\n

The AHV, the basic insurance scheme, is financed on a pay-as-you-go basis and<\/strong> is fed by contributions on earned income and an allocation from VAT.
\nThis covers the expenditure on benefits.
\nIn the past, this worked well because the baby boomers paid in \u201ca lot\u201d and there were \u201cfew\u201d pension recipients.
\nThis enabled AHV pensions to be financed at the current level.
\nAs life expectancy increases and the birth rate decreases, both the income side decreases and the expenditure side increases: the gap is widening inexorably and the AHV has had a funding deficit since 2014.
\nThis means that income no longer covers expenditure. <\/span><\/p>\n

Even in the second pillar, the occupational pension scheme, the pension promises to current and future pensioners are not sufficiently covered by their retirement assets<\/strong> because life expectancy has increased significantly and the level of returns has also fallen.
\nAs a result, pensioners are now being cross-subsidized by those in employment.
\nHow does this happen?
\nThe BVG retirement assets are converted into a pension by the pension funds at the legally prescribed conversion rate of currently 6.8%.
\nIn order to meet these obligations, many pension funds have paid and continue to pay out the returns earned on the assets of employees as payments to pensioners.
\nEmployees receive a lower return credit on their retirement assets, i.e. lower than the return that the pension fund has actually achieved on its capital.
\nThe extent of the redistribution<\/a> is estimated at around CHF 5.3 billion for 2015 \u2013 although the pension funds have introduced countermeasures.
\nThis redistribution contradicts the principle of the funded 2nd pillar.
\nOther effects such as excessively high technical interest rates, investment strategy and the low interest rate environment also contribute to these so-called \u201cretirement losses\u201d<\/a> from the pension fund perspective. <\/span><\/p>\n

The phenomenon of pensioners in the 2nd pillar being cross-subsidized by employees in the same pension fund has been occurring for around 10 years.
\nThe 2nd pillar regulations are therefore also in need of restructuring. <\/span><\/p>\n

\n
<\/i>Background information on the winners<\/div>\n
The planned 2020 pension plan <\/a>is particularly beneficial:<\/strong><\/div>\n