What does the 6.3% yield mean for my pension?

The 6.3% return achieved in 2025 by Swiss pension funds is gradually transformed into more substantial accumulated capital at the time of retirement. This surplus helps to improve the calculated future annuity with the average conversion rate of 5.20%. In other words, today's exceptional returns become a hedge against inflation tomorrow and a buffer on future income.

What is the difference between the 6.3% in 2025 and the 20-year average 3.6%?

2025 was an extraordinary year: +6.3% vs an annual average of 3.6% over the last 20 years. This means that pension funds have earned almost twice the average historical performance. However, the average conversion rate (5.20%) remains almost stable, because it takes into account longer economic cycles and does not adjust annually to market fluctuations.

What does it mean that stocks represent 34% of the portfolio?

Shares account for 34% of total pension fund investments, the highest ever. This means that coffers are increasingly exposing themselves to risk capital to pursue higher returns, while reducing bond exposure (to record lows). This strategy worked well in 2025 and 2026, but carries risks in the event of a global stock market correction.

Does the 5.20% conversion rate remain stable in the coming years?

According to Complementa's projections, the average conversion rate could remain broadly stable over the next five years. This is good because it ensures greater predictability of future annuities for those approaching retirement. However, changes in life expectancy or global financial markets could affect cash decisions in the future.

What are illiquid investments and how do they affect my savings?

Illiquid investments (real estate, mortgages, alternatives) offer stable returns but reduce the operational flexibility of the coffers. Pension funds are increasing this allocation, mainly in Swiss real estate and infrastructure. Although diversification is positive, it carries risks: a correction in the real estate market could impact future returns and, consequently, the annuities paid to pensioners.

Pension funds: return boom in 2025 (cross-border guide)

Di Laura Bianchi · Published on 8 September 2026

Investor reviewing pension fund performance and retirement income projections with financial documents.

Swiss pension funds archive 2025 with an average return of 6.3%, driven by equities. Stable conversion rate at 5.20% for future annuities.

Context

In a nutshell

Swiss pension funds: yield +6.3% in 2025, all-time high in the last 20 years
Shares reach 34% of the portfolio, bonds at historic lows
In 2026 confirmed trend: +5% until August, stable conversion rate at 5.20%

Key facts

What: Exceptional returns from Swiss pension funds, driven by shares and alternative investments
When: 2025 and 2026 (until August)
Where: Switzerland (469 pension funds, 80% sector equity)
Who: Complement (consulting company), Swiss pension funds
Amount: 6.3% (2025), 5% (2026), CHF 77 billion returns vs CHF 67 billion paid
Historical benchmark: Twenty-year average of 3.6% per year far exceeded

Swiss pension funds closed 2025 with an extraordinary performance: average return of 6.3%, well above the twenty-year average of 3.6% per year. The study published today by the consulting firm Complementa, based on data from 469 pension funds covering around 80% of the sector's total assets, reveals a clear shift towards venture capital. Stocks reached 34% of the portfolio — the highest value ever recorded in the history of the Swiss system. Meanwhile, the bond allocation fell to a new all-time low. The positive trend continues in 2026: until August, yields stand at a further +5%.

The 'third taxpayer': when financial markets work for the

Operational details

How the extraordinary 2025 impacts future pensions

Pension funds have decided to apply an average conversion rate of 5.20% to the capital accumulated at the time of retirement (age 65). Discover how to calculate your pension. According to Complementa's projections, this value could remain substantially stable over the next five years, providing predictability for those approaching retirement. The conversion rate is crucial: it determines how much monthly pension the retiree will receive from the accumulated capital. A higher average return — such as the 6.3% in 2025 — means larger capital sums at the time of withdrawal from the labor market, and therefore potentially higher pensions once the conversion coefficient is applied.

However, it is important to consider that the conversion rate remains compressed by current extremely low interest rates and the increase in life expectancy. A rate of 5.20% is higher than the lowest historical average of recent years, but remains modest when compared to previous generations. This means that someone who has accumulated 500,000 francs will receive an annual pension of approximately 26,000 francs (500,000 × 5.2%), equal to approximately 2,167 francs monthly. For this reason, the exceptional returns of 2025 and 2026 function as a 'cushion' against inflation erosion of future pensions.

…

Key points

How to Check Your Balance and Calculate Your Expected Pension

Every Swiss worker affiliated with a pension fund LPP/BVG has the right to receive an annual statement of account reporting the accumulated capital, returns, and pension projections. If you have not received this document, it's time to contact your pension fund directly (the name is on your pay slip). The procedure to calculate your expected pension is simple and follows three steps:

1. Retrieve your latest statement of account from your pension fund (paper or online platform), which can be accessed on the fund's website or requested via email from the administrative office. 2. Verify the accumulated capital as of December 31st of the previous year. This is the gross value on which your future pension is calculated. 3. Apply the conversion rate (5.20% national average, but may vary slightly between funds). Multiply the capital by 5.2% (0.052) to get the estimated annual pension.

Numerical example: If you have accumulated 400,000 francs and your fund applies 5.20%, the annual pension will be approximately 20,800 francs (400,000 × 0.052), equal to 1,733 francs gross monthly. Of course, this is the gross amount; cantonal taxes on pension income will further reduce the net amount in your pocket.

…

Frequently Asked Questions

What does the 6.3% yield mean for my pension?: The 6.3% return achieved in 2025 by Swiss pension funds is gradually transformed into more substantial accumulated capital at the time of retirement. This surplus helps to improve the calculated future annuity with the average conversion rate of 5.20%. In other words, today's exceptional returns become a hedge against inflation tomorrow and a buffer on future income.
What is the difference between the 6.3% in 2025 and the 20-year average 3.6%?: 2025 was an extraordinary year: +6.3% vs an annual average of 3.6% over the last 20 years. This means that pension funds have earned almost twice the average historical performance. However, the average conversion rate (5.20%) remains almost stable, because it takes into account longer economic cycles and does not adjust annually to market fluctuations.
What does it mean that stocks represent 34% of the portfolio?: Shares account for 34% of total pension fund investments, the highest ever. This means that coffers are increasingly exposing themselves to risk capital to pursue higher returns, while reducing bond exposure (to record lows). This strategy worked well in 2025 and 2026, but carries risks in the event of a global stock market correction.
Does the 5.20% conversion rate remain stable in the coming years?: According to Complementa's projections, the average conversion rate could remain broadly stable over the next five years. This is good because it ensures greater predictability of future annuities for those approaching retirement. However, changes in life expectancy or global financial markets could affect cash decisions in the future.
What are illiquid investments and how do they affect my savings?: Illiquid investments (real estate, mortgages, alternatives) offer stable returns but reduce the operational flexibility of the coffers. Pension funds are increasing this allocation, mainly in Swiss real estate and infrastructure. Although diversification is positive, it carries risks: a correction in the real estate market could impact future returns and, consequently, the annuities paid to pensioners.