Conversion rate
The percentage of your pension-fund balance paid each year as a lifelong pension.
The legal minimum applies to the mandatory part only. Many funds apply a lower rate to the whole balance. At 6.8 %, CHF 100’000 gives CHF 6’800 a year for life.
Tools that use it
Related terms
- BVG (pension fund)The second pillar, the occupational pension fund that employees and employers pay into, paid out as a pension, a lump sum or both.
- Pension-fund pensionA lifelong monthly payment from the pension fund, set by the balance and the conversion rate.
- Lump sum (capital withdrawal)Taking pension-fund or 3a money as a one-off payment instead of a pension.
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Swiss pensions
Your pension fund before 65: annuity, lump sum or leave it
What you can do with second-pillar money if you stop working early: early retirement, a vested benefits account, a lump sum, and the tax and risk trade-offs.