Swiss Pension Funds Study 2025 – Why high ambitions are worthwhile

Many people in Switzerland have saved a large portion of their assets in a pension fund. This makes it all the more important that Swiss pension funds are in good shape and manage the money entrusted to them successfully. Swisscanto's Swiss Pension Fund Study, which was published for the 25th time in 2025, provides in-depth insights into the second pillar once a year.

The programme «Geld und Vorsorge» (Money and Pensions) on Swiss regional television took this as an opportunity to take a closer look at the topic of pension funds. In the studio, presenter Martin Spieler spoke with Iwan Deplazes, Head of Asset Management at Zürcher Kantonalbank, about the most important aspects and findings of the latest study.

Positive real interest rates despite crises

The latest Swiss Pension Fund Study 2025 once again highlights the great importance of the Swiss pension fund system. After all, for over 20 years, pension funds have almost always offered insured persons positive real interest rates, despite numerous crises. A key factor here is the return on investment, which is the most important source of income for pension funds – even ahead of contributions from employers and employees. According to the Swiss Pension Fund Study 2025, the average net return of pension funds last year was an impressive 7.6 percent.

Large differences in returns

The large differences between the various pension funds are also noteworthy: while the weakest 10 per cent achieved a return of 4.8 per cent, the best 10 per cent achieved a net return of 10.8 per cent. «Of course, pension funds are also exposed to fluctuations on the capital markets», explains Iwan Deplazes, Head of Asset Management at Zürcher Kantonalbank. «However, they have the option of choosing their investment strategy and investing either more aggressively or more conservatively. In this area, pension funds bear a great responsibility for their insured members. Ultimately, it is the insured members who suffer if pension funds achieve lower returns», Deplazes continues.

Risk capacity vs. risk appetite

How aggressively or cautiously a pension fund can act on the financial markets depends, among other things, on its risk capacity. However, the Swiss Pension Fund Study 2025 shows that this is not the decisive factor for differences in returns. The study compared the returns of funds with similar risk capacity and also found significant differences here. This leads to the conclusion that success depends largely on the risk appetite of the decision-makers: Pension funds that aim for higher returns tend to achieve better results. «The higher you set the bar, the better the result will tend to be», explains Iwan Deplazes.

Insured persons benefit from returns

According to the Swiss Pension Fund Study 2025, this in turn benefits insured persons in the form of better interest rates. Some received five times as much interest on their retirement capital last year as others. The 10 per cent of funds with the lowest interest rates passed on an average of only 1.7 per cent to insured persons, barely more than the BVG minimum of 1.25 per cent. In contrast, the 10 per cent of funds with the highest interest rates paid their insured persons 9.4 per cent.

Stable 2nd pillar

Overall, the latest Swiss Pension Fund Study 2025 confirms the high stability of the 2nd pillar. At the end of 2024, private pension funds achieved the second-highest coverage ratio of the past 25 years at 117 per cent. The funds were even able to quickly overcome the setbacks in April this year. This shows that occupational pension provision is well equipped for uncertain times.

«The money in pension funds is very well managed and invested», summarises Iwan Deplazes, adding: «However, it is important that pension funds and their decision-makers seize the opportunity to invest the money entrusted to them for the long term and with a view to generating returns – for the benefit of the insured.»

The programme «Geld und Vorsorge» (in Swiss German) on Swisscanto's Swiss Pension Fund Study 2025 was broadcast on 27 June 2025 on Tele 1, Tele M1 and TVO.