Executive Summary

The Supervisory Board of Occupational Pensions (OAK BV) published its survey on the financial situation of Swiss pension funds as of December 31, 2025 on May 12, 2026. The average net asset performance was 6.1%, and coverage ratios rose to an average of 117.1%. Active insured persons received an average interest rate on their retirement savings of 4.33%. Virtually no pension funds without state guarantees were in underfunding. Value fluctuation reserves were expanded: 75% of institutions achieved at least 75% of their target value.

Persons

Topics

  • Occupational pensions
  • Financial stability
  • Coverage ratios and asset performance
  • Governance and conflicts of interest

Clarus Lead

Despite increased geopolitical tensions and market volatility in 2025, Swiss pension funds have proven largely resilient – thanks to built-up reserves and positive investment performance. However, structural weaknesses are evident: collective and joint institutions, in which three-quarters of active insured persons are covered, show lower coverage ratios (114.5% compared to 119.5% for company-sponsored institutions). Growth strategies lead to dilution of value fluctuation reserves – a conflict of interest to which the OAK BV has responded with new directives on legal transactions with related parties. These governance deficiencies are also recognized at the political level and are to be addressed through legislative measures.

Detailed Summary

Positive investment performance in 2025 – with good results in bond and equity markets – led to a further increase in coverage ratios. Institutions without state guarantees and without full insurance solutions achieved an average of 117.1% (previous year: 114.7%), while publicly funded pension funds with state guarantees were at 91.3% (previous year: 88.3%). The proportion of underfunded institutions fell to virtually zero percent. At the same time, value fluctuation reserves were significantly expanded: 75% of institutions achieved at least 75% of their target value as of the end of 2025, compared to 53% in the previous year. These reserves are crucial for managing volatile market phases.

The high interest rate on retirement savings (4.33%) significantly exceeds annual inflation (0.2%) and is well above the BVG minimum interest rate of 1.25%. This directly benefits insured persons. However, significant differences are evident between institution types: collective and joint institutions show lower average coverage ratios than company-sponsored institutions. A major driver is growth – in practice, it leads to dilution of existing value fluctuation reserves and reduces risk capacity. This creates a conflict of interest between short-term growth objectives of operating companies and long-term financial stability of insured persons.

The OAK BV has responded to these challenges with targeted measures. In early May 2026, it issued directives on minimum requirements for legal transactions with related parties to prevent non-market-standard advantages at the expense of insured persons. The Federal Council's postulate report on the evaluation of structural reform addresses central issues such as governance and brokerage activities and confirms the need for legislative action. The OAK BV will publish a statement before the summer break.

Key Messages

  • Swiss pension funds show solid financial metrics in 2025: 6.1% asset performance, 117.1% average coverage ratio, virtually no underfunding.
  • Active insured persons benefit from high interest rates (4.33%), which far exceed inflation.
  • Structural risks arise from growth strategies at collective and joint institutions, which cover two-thirds of insured persons and show lower coverage ratios.
  • New OAK BV directives and planned legislative reforms are intended to address governance deficiencies and conflicts of interest.

Critical Questions

  1. Data Quality: How is the consistency of data collection across seven regional supervisory authorities ensured, and what validation mechanisms exist against reporting errors?

  2. Conflicts of Interest: To what extent can the new OAK BV directives on legal transactions with related parties be effectively enforced when operating companies of collective and joint institutions have economic incentives for growth?

  3. Causality: Is the decline in underfunded institutions (1% → ~0%) primarily attributable to positive investment performance, or do restructuring measures and mergers play a relevant role?

  4. Implementation Risks: The postulate report identifies need for action in governance and brokerage activities – what timeline and resources are planned for legislative reforms, and what transition problems could arise?

  5. System Stability: How robust are the built-up value fluctuation reserves (75% target value) against a scenario of simultaneous geopolitical shocks and market volatility over several years?

  6. Insured Person Protection: What transparency requirements exist for insured persons regarding conflicts of interest and fee structures in collective and joint institutions?

Source Index

Primary Source: Supervisory Board of Occupational Pensions (OAK BV): Financial Situation of Pension Funds 2025 – https://www.news.admin.ch/de/newnsb/e35nqWBf0kFK

Verification Status: ✓ 12.05.2026

This text was created with the support of an AI model. Editorial responsibility: clarus.news | Fact-checking: 12.05.2026