SFI PDN—Pension at Risk: Is Our Pension System Under Threat?

The Swiss 2nd pillar—a key component of the Swiss social system and of utmost relevance to almost all Swiss workers and retirees—is currently experiencing a major stress test. In addition to ongoing increases in life expectancy, the recent surge in interest rates represents a considerable challenge for Swiss pension funds.
Date19 Jun 2023
CategoryPress

In a new SFI Public Discussion Note, Swiss Finance Institute Professor Olivier Scaillet from the University of Geneva, along with Marc Fournier and Stéphane Riesen, both from Pittet Associés Ltd, analyze the effects of interest rates in the current context and then test the robustness of the Swiss 2nd pillar’s financial capacity in light of several different economic scenarios.


The level of detail in the data they use makes it possible to study the stability of the 2nd pillar system in a granular way using complete and individual data for all of the country’s pension funds, to develop a precise model of the future evolution of each pension fund, and to map out the risk borne by each institution.

 

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