BVG Reform 2024: What Changes Are Coming and How Can You Optimize Your Retirement Plan?

The BVG Reform 2024 brings significant changes to occupational pensions in Switzerland. As an employee or employer, it’s crucial to understand these changes and take action in advance. In this post, you’ll learn everything you need to know about the BVG reform and how to prepare for it. Use our BVG Reform Calculator and connect with our experienced financial planners to analyze the impact on your personal situation.

What is the BVG Reform and Why is it Necessary?

The BVG Reform 2024 was designed to ensure the long-term stability of Switzerland’s pension system. With increasing life expectancy and persistently low interest rates, pension funds face challenges in maintaining sustainable payouts. Key changes introduced by the reform include:

• Reduction of the conversion rate: The conversion rate will be lowered from 6.8% to 6.0%. This means you will receive a lower pension for the same amount of accumulated retirement savings.

• Adjustment of the retirement credits: The annual savings contributions will be restructured to distribute more equitably across different age groups, accounting for the financial demands of longer life expectancy.

• Reduction of the coordination deduction: Lowering the coordination deduction increases the portion of your salary that is insured, which is especially beneficial for those with lower incomes.

Examples: How Will the BVG Reform Affect Your Retirement Plan?

To better understand the impact of the BVG Reform 2024, here are two concrete examples:

Example 1: Lower Pensions Due to the Reduction of the Conversion Rate

Imagine you’ve saved CHF 500,000 in your pension fund by the time you retire. Previously, with a conversion rate of 6.8%, you would have received an annual pension of CHF 34,000. With the new rate of 6.0%, your pension drops to CHF 30,000 per year. This reduction can significantly affect your standard of living in retirement.

Example 2: Higher Retirement Credits Due to the Reduction of the Coordination Deduction

If you earn CHF 60,000 per year, the previous coordination deduction was CHF 25,725, meaning only CHF 34,275 of your salary was insured under the BVG. With the reform, the coordination deduction is lowered to CHF 20,000, meaning CHF 40,000 of your salary is now insured. This results in higher annual retirement credits and a better pension plan.

How Can You Best Prepare for the BVG Reform?

The BVG Reform 2024 affects every employee and employer in Switzerland. To optimize your retirement plan, consider taking the following steps:

1. Use the Tellco BVG Reform Calculator: With this tool, you can calculate the specific impact of the reform on your retirement plan. You’ll get a clear overview of your future pension entitlements and see how the changes will affect your retirement savings.

2. Consult with Our Financial Planners: Our experienced financial planners are here to help you analyze the results of the calculator and develop personalized strategies. Together, we can ensure your retirement plan is well-positioned to handle the reform.

Why Should You Act Now?

The BVG Reform 2024 is approaching quickly, and it’s important to take action early. The better informed you are about the reform and its impact, the better you can plan your financial future. Our financial planners offer tailored advice specifically for your situation.

Schedule an Appointment Now: Don’t get caught off guard by these changes. Contact our financial planners and find out how to optimize your retirement plan. We’ll help you make the right decisions to secure your financial future after the reform.

Conclusion: Prepare for the BVG Reform and Secure Your Future

The BVG Reform 2024 introduces several changes that can significantly impact your retirement plan. Take advantage of this opportunity to analyze your situation with our BVG Reform Calculator and receive professional support from our financial planners. This way, you can ensure you’re fully prepared for the reform and your financial future is secure.