“Pension-at-Risk” or the impact of rising interest rates on the 2nd pillar

1970-01-01 00:00:00

When the Federal Law on Occupational Retirement, Survivors’ and Invalidity Provision (LPP) came into force in 1985, the life expectancy of men aged 65 was 15 years and the compulsory LPP conversion rate was 7 .2%. In 2021, the life expectancy of men reaching retirement age had increased to 20 years, while the conversion rate had fallen slightly to 6.8% (see graph 1 ).

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