2023-05-29 14:52:16
The Swiss population seems more concerned about the loss of its immediate purchasing power than the future depreciation of its 2nd pillar. This is at least what emerges from a Fairplay study, carried out by Sotomo at the request of Zurich Insurance and published on Monday. This result could be explained in particular by the fact that a majority of contributors do not count their LPP in their assets.
According to the survey, the Swiss population has high expectations for retirement provision, since respondents indicated that they would need three quarters of their current income after retirement to be able to live fully satisfied. This greatly exceeds the socio-political objective of 60% defined by the Confederation for the 1st and 2nd pillars.
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Three-quarters of respondents say their main concern is the rising cost of living in recent months due to inflation. The loss of value of private savings concerns only 43% of respondents. And only 29% of LPP policyholders indicated that the loss of their pension fund assets is a reason for concern. It should be noted, however, that only 47% of those questioned count having LPP retirement assets in their fortune. Yet it is largely on this savings that income after retirement will depend.
However, only 18% of respondents believe that the amount of savings is decisive for the amount of their future pension. They are 39% to believe that it is the conversion rate which is determining while 43% affirm that they are both of equal importance.
Asset Unfairness
The 2nd pillar not only has to deal with inflation, it also has to deal with the increase in statistical life expectancy and the deterioration of long-term rates. Since the minimum conversion rate anchored in the law has not been revised downwards since 2005, the current LPP retirement capital of pensioners is no longer sufficient to finance the promised pension.
To fill this gap, part of the income from the assets of the assets is redistributed to retirees, which calls into question the fundamental principle of the second pillar, saving for one’s own pension. To remedy this, Parliament recently decided on a reform of the LPP with a reduction of the conversion rate from 6.8 to 6%, but this is the subject of a referendum.
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58% of those questioned find it unfair to use the income from their LPP savings capital to finance the pensions of current retirees.
The Sotomo polling institute questioned 1,865 people in French-speaking and German-speaking Switzerland from January 9 to 23. The margin of error is +/- 2.3%.
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