Savings process and retirement assets

The savings process begins at the age of 25 and lasts until retirement age (for men at age 65 and women at age 64). The retirement assets are accumulated through annual contributions (graded according to age) and the deposits made (vested benefits deposits when changing jobs). Interest is paid on the existing capital. The Federal Council sets the minimum interest rate (for 2022, the interest rate is 1%). The pension credits are defined as a percentage of the insured salary. The amount of the pension credits depends on the age of an insured person.

A 25-year-old man can thus achieve vested retirement assets without interest of 500% (10 years at 7%, 10 years at 10%, 10 years at 15% and 10 years at 18%) of the insured salary. The accumulated vested retirement assets plus interest are the basis for the calculation of the retirement pension. The calculation of benefits in the event of disability or death is based on the capital available at the time of the insured event and the sum of future pension credits (without interest).