Vita Collective Foundation: Attractive interest on retirement assets in 2025
After a good investment year in 2023, Swiss pension funds have also recorded positive results so far this year. The returns achieved are used to build up reserves, which in turn is reflected in the cover ratios. The insured benefit from this development: In 2025, the Vita Collective Foundation will pay interest on retirement assets of up to 2.25 percent.
The current investment year is looking bright up to the end of November 2024, with the stock markets in particular recording a significant rise in prices. However, geopolitical tensions, inflationary dynamics and the volatile interest rate environment remain challenging. The return on the overall portfolio of the Vita Collective Foundation is pleasing: Since the beginning of the year, net performance has amounted to 6.76 percent. Current information on the cover ratio and performance is available at vita.ch.
Indicative cover ratio of 111.7 percent as of the end of November 2024
The good performance development is having a positive effect on the cover ratio. As of the effective date at the end of November 2024, this had reached an indicative value of 111.7 percent. This means that the target value of 103 percent, which is a prerequisite for the distribution of an additional interest payment, was clearly exceeded. "Thanks to the good performance, we were simultaneously able to further increase our fluctuation reserves," says Werner Wüthrich, Managing Director of the Vita Collective Foundation. "The foundation also has a very good age structure. Our pension obligations are comparatively low, making us a sustainable and efficient pension partner for the affiliated companies and their employees."
Retirement assets in 2025 with up to 2.25 percent interest
The Vita Collective Foundation is one of the few foundations on the market that announces the interest rate on retirement assets in advance for the following year. The interest rate is determined according to a clear mechanism defined in the regulations: Additional interest is paid from a cover ratio of 103 percent. The base interest rate corresponds to the statutory BVG minimum interest rate, which is currently set at 1.25 percent by the Federal Council. For 2025, the Vita Collective Foundation will pay interest on the total retirement assets as follows:
Annual retirement provision affiliation
Interest rate
2020 or earlier
2021
2022
2023
2024
2025
Total interest earned
2.25%
2.25%
2.25%
2.25%
2.25%
1.25%
Base interest
1.25%
1.25%
1.25%
1.25%
1.25%
1.25%
Additional interest
1.00%
1.00%
1.00%
1.00%
1.00%
0.00%
Vita Classic conversion rates for the years 2025 to 2027
In order to counteract the redistribution in the second pillar and to be able to guarantee a sustainable and fair retirement provision solution for all insured persons, the Vita Collective Foundation regularly adjusts the conversion rates to current circumstances. This takes account of changes in market conditions and higher life expectancy. The conversion rates for retirement at the reference age in the years 2025 to 2027 are set as follows:
from January 1, 2025
from January 1, 2026
from January 1, 2027
Men
5.50%
5.40%
5.30%
Women
5.55%
5.50%
5.45%
The conversion rates for the previous year apply to insured persons with a pension start date of January 1. The Retirement Provision Regulations 2025 are available at vita.ch/downloads.