Swiss government raises occupational pension minimum rate to 2%

Switzerland’s Federal Council has raised the minimum interest rate on mandatory occupational pension savings to 2% from 2027, up 0.75 percentage points, SRF reports.

The rate, set by the Federal Council, determines the minimum interest pension funds must pay on savings in the mandatory part of the occupational pension system. It has stood at 1.25% since 2024.

The government said pension funds were in a very solid financial position. The increase would help offset the higher overall inflation since 2022.

For an employee with 200,000 francs in pension savings, annual interest would rise from 2,500 francs at the current rate to 4,000 francs at 2%. Over several years, the higher minimum rate would add several thousand francs to accumulated pension savings.