Wages increased again: Be careful, your pension fund assets are shrinking!

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For most Swiss people, their retirement fund is their biggest stash of money. Swiss pension funds manage a total of 1,100 billion francs belonging to 4.4 million insured people.

The asset management costs of the pension fund play a very important role, especially for the insured. After all, these are deducted from your own assets, that is, directly from your retirement benefit.

According to the current assessment by Swisscanto, a subsidiary of Zürcher Kantonalbank, administrative costs have increased again since 2020. Over the last five years (2018 to 2022) costs have increased from 0.48 to 0.54 percent. Differences between pension funds have widened significantly again. Depending on the pension fund, management costs can range from 0.14 to 1.23 percent.

Top performers spare no expense

Administrative costs have risen sharply, especially in larger pension funds that manage more than 500 million. From the previous 0.48 percent to 0.56 percent within one year.

Pension funds with high management costs do not outperform those with low ones in any way. During the research, Swisscanto found that high management costs are not the determining criterion for good or bad net returns. Pension funds in the financial sector have performed particularly well in recent years, followed by the manufacturing sector.

Depending on the industry

The amount of administrative costs also depends on which sector the relevant pension fund specializes in. In 2022, most administrative costs occurred in the manufacturing sector (0.66 percent). When you look at the five-year average, the sector with the highest costs is retail with 0.55 percent.

There are also regional differences. Pension funds in German-speaking Switzerland are much cheaper than in French-speaking Switzerland, where management costs average 0.55 percent. In French-speaking Switzerland, the average cost is 0.69 percent.

Source :Blick