The funding ratios of Swiss pension funds were at an all-time high at the end of 2021, according to Swisscanto.

Its Pension Funds Monitor revealed that the funds’ estimated asset-weighted coverage ratios rose again in the fourth quarter of 2021. For private pension funds, the funding ratio stood at 124.6 per cent at the end of the year, compared to 116.1 per cent at the end of 2020.

For fully-funded public pension schemes the funding ratio was 116.7 per cent (109.2 per cent) and for partially funded public pension schemes the funding ratio was 94.4 per cent (87.7 per cent).

Swisscanto’s Pension Funds Monitor is a real-time indicator of the financial position of the second pillar in Switzerland. It provides information about the average funding ratio and the average investment performance of Swiss pension funds.

In 2021, the Swiss pension institutions surveyed achieved an estimated asset-weighted return of 9.25 per cent (unweighted: 8.38 per cent). With the exception of global bonds and Swiss bonds, all asset classes made positive contributions to returns.

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