Articles

Hundreds of Thousands of People Could Still Purchase Pension Benefits

Approximately 800 billion Swiss francs are currently held in second pillar pension funds. It could be much more if pension fund members were to voluntarily purchase additional benefits in their pension fund. 

At Publica, the largest pension fund in Switzerland with approximately 63,500 pension fund members and 43,000 pensioners, there is potential for additional payments of 6.4 billion Swiss francs, roughly 100,000 francs per pension fund member. But at the last count, just 77 million Swiss francs had been voluntarily paid into the federal pension fund. 

Insufficient Funds to Benefit

Limited household budgets may be the reason behind this reluctance. According to the pension fund study carried out by Credit Suisse, the 20 percent of pension fund members with the highest income are primarily able to pay large amounts into all three pillars. But it makes sense for all pension fund members to make voluntary contributions to their pension provision, especially by purchasing benefits in their pension fund.