Is this a precurser for other funds as well? Will this be the trigger to the next downturn? Aivars Lode
Switzerland’s first-pillar pension fund could be forced to sell off millions in assets per month to finance pensions if no long-term funding solution is found, the country’s government has warned.
The Swiss first pillar fund AHV/AVS is expected to amass a CHF43bn (€37.2bn) deficit by 2030, in a ‘worst-case’ scenario assuming no return on investments.
To ensure all pension payouts are met by then, the fund needs CHF53bn, the government said in a press release about a consultation on first-pillar reforms.
“Successful measures to ensure the stability of the AHV/AVS fund are urgently necessary,” the government stated. “Without them the fund would have to sell of assets worth CHF100m per month to be able to meet the pension payments.”
An Aussie who has lived around the world and done business in a large number of different countries. Aivars is an Ambassador for The Transparency Task Force, a collaborative, campaigning community dedicated to driving up the levels of transparency in financial services around the world.