2nd Pillar (BVG) proposed Revision

If you’ll have a significant amount of extra-mandatory contributions in your pillar 2 at the time of retirement, the minimum conversion rate might not affect your pension as many pension funds use a lower rate for the complete pension (combination of mandatory and extra-mandatory parts).

The lower minimum conversion rate of the proposal will reduce the theft from the older generation in the long term, though, which should result in you getting higher returns on your pillar 2 capital (as the pension fund doesn’t have to redirect returns on your capital to pensions of retirees, or at least less).

5 Likes