Swiss occupational pensions have fallen 40 per cent since 2002, leaving many retirees struggling to maintain their current standard of living, according to research by Swiss financial services provider VZ VermögensZentrum.

Overall, Swiss pensions have fallen 16 per cent since 2002, with annual benefits in a typical calculation falling by more than CHF 12,000.

The study found that while the Swiss state pension system (AHV) will begin disbursing pensions 13 times a year starting in 2026, occupational pension funds have notably decreased the benefits they provide.

This decline has impacted replacement rates, as pensions that were once expected to replace around 60 per cent of a worker’s final salary now replace much less.

For an individual earning CHF 100,000 per year, the replacement rate has fallen from over 62 per cent in 2002 to around 51 per cent in 2025.

Meanwhile, for high earners with an annual salary of CHF 150,000, the replacement rate has dropped from 58 per cent to 42 per cent.

These figures reflect the growing pressures on Swiss pensions, with VZ VermögensZentrum highlighting that pension funds remain under pressure due to very low or even negative interest rates and rising life expectancy.

For many people, pensions from both the AHV and pension funds cover less than half of their previous salary, particularly affecting medium and high-income earners.

On average, pensions paid out upon retirement are almost 10 per cent lower than expected.

While AHV pensions are regularly adjusted for inflation and will see an additional 8.3 per cent increase from 2026 due to the introduction of a 13th pension, these gains are offset by shrinking occupational pensions.

The provider said the BVG reform, which aimed to strengthen occupational pensions by adjusting contribution rates, updating retirement calculations, and accounting for longer life expectancy, should have provided relief but was rejected by voters.

At the same time, ongoing economic challenges, including the Swiss National Bank lowering its key interest rate several times, most recently to zero per cent in June, have reduced the investment returns that pension funds rely on to pay out benefits.

Despite these trends, the survey revealed a gap between perception and reality among Swiss pension savers, as almost 60 per cent of respondents believe they will be able to finance their retirement without any problems with their AHV and pension fund.

However, the confidence index remained at 82 per cent, the same as last year, indicating that most respondents view their financial and pension situation negatively.

People are particularly concerned about the security of their pensions, with fewer than one in three expecting their AHV pension to be secure, and three out of four viewing the stability of future pensions as critical.

The provider emphasised that for individuals to retire comfortably, they need to save and make voluntary private arrangements, as pensions alone are generally no longer sufficient to provide adequate financial security.

Many people in Switzerland are likely to underestimate the shortfall, with 14 per cent of respondents feeling financially better off than a year ago. Meanwhile, almost a quarter reported their situation had worsened.

In response to the report, however, the SBB Pension Fund said that it is undisputed that pensions have declined, but warned that the findings should be “viewed with caution”.

This, it said, is because they don't account for measures that many pension funds, including SBB, have taken to cushion reductions in conversion rates, additional interest, lump-sum withdrawals, or individual retirement asset adjustments.

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