From 2025 to 2029, the AXA LPP Foundation Suisse Romande will gradually introduce a standard, comprehensive conversion rate of 5.6% for men and women aged 65.
The adjustment will take place over a span of five years. This means insureds can plan with greater reliability, and it cushions any pension reductions, especially for people who are about to retire.
The adjustment will not impact lump-sum payouts or existing retirement pensions.
Adjusting the conversion rate significantly reduces the redistribution from people who are still working to pensioners. This enhances generational fairness within the Foundation and ensures its long-term attractiveness and financial stability – for the good of both the insureds and the Foundation as a whole.
The conversion rate determines which percentage is used to convert the retirement capital you have saved up into an annual pension when you retire. A conversion rate of 5.6% means that every CHF 100,000 saved (most people have far more than this) results in a pension of CHF 5,600 a year.
If the conversion rate currently in use is above the correct level from an actuarial (i.e. purely mathematical) point of view, then every time someone retires, the pension fund needs to have more capital in reserve than the assets that person has actually saved in order to fund his or her retirement pension. This is the reason for the ever-increasing redistribution from working insureds to pensioners. The difference between the assets accumulated and the capital actually needed is referred to as a conversion loss.
A comprehensive conversion rate means that the same conversion rate is applied to a person's entire retirement assets (i.e. both mandatory and extra-mandatory assets).
A split conversion rate means that mandatory and extra-mandatory assets are treated differently, with two different conversion rates used to calculate the annual retirement pension. You can find out more about the pension fund's conversion rate here.
Each individual’s future pension is different and depends on a range of factors, including how much retirement capital they have saved while working and the relative proportions of mandatory and extra-mandatory assets.
As a rule of thumb, retirement assets x conversion rate = annual pension.
You can simulate your future pension at any time in the myAXA pensions portal .
The following conversion rates apply to anyone retiring at age 65 between 2025 and 2028:
The adjustment will take place over a span of five years. This means insureds can plan with greater reliability, and it cushions any pension reductions, especially for people who are about to retire.
The conversion rate of the previous year applies to people retiring on January 1.
A single, comprehensive conversion rate of 5.6% will apply to all men and women retiring at age 65 starting in 2029.
Insureds with extra-mandatory retirement assets of at least 30% will be able to adapt the amount of retirement and partner pensions in line with their individual circumstances. They can increase their retirement pension – in which case the insured partner pension will be lower in the event of death. Conversely, they can increase the partner pension in the event of death – in which case their own retirement pension will be commensurately lower. Insureds can specify their preferred option when they register for retirement. No action is required before then.
The adjustment of the conversion rate has no effect on lump-sum payouts.
No, nothing will change for you. The adjustment of the conversion rate has no effect on existing retirement, survivors or disability pensions.
The myAXA pensions portal lets you look up your current retirement assets and learn more about your pension provision at any time. Your latest pension fund certificate is also available for you in the portal.
The statutory minimum conversion rate, currently set at 6.8%, applies to the mandatory portion of occupational benefits, i.e. the minimum according to the BVG/OPA. Pension funds are free to set their own conversion rate for the extra-mandatory portion.
Even with a comprehensive conversion rate below the statutory minimum (currently 6.8 %), the statutory minimum benefits for mandatory assets are paid at all times. To monitor this, a control account (known as a shadow account) is kept for every single insured person.
You can increase your personal retirement assets through voluntary buy-ins, provided you have not already reached the maximum buy-in amount. You should check beforehand how a voluntary buy-in will affect both your future pension and your tax situation. You can also save additional capital for your retirement in the third pillar.
For more information and frequently asked questions on the change in the conversion rate, please consult the Q&A as well as the additional documents.
