Swiss pension funds have enjoyed three strong years. According to Pictet Asset Management, many pension funds are currently in robust financial health. Recent estimates indicate that the average funding ratio rose from 114 percent in 2024 to around 117 percent in 2025.
«The starting position is significantly stronger today than it was just a few years ago,» Viviane Sorg, Head Institutional Market Switzerland at Pictet Asset Management, told finews. Higher funding ratios allow pension funds to take targeted risks to generate the returns required to meet their long-term objectives.
«At the same time, we need to keep a close eye on the rapidly changing environment,» she said, noting that markets remain volatile and funding ratios can fluctuate depending on market developments.
Equities remain the main return driver
Pictet’s assessment of the long-term return outlook is particularly clear. According to the firm’s latest «Secular Outlook,» equities, alongside private equity and European real estate, remain the most attractive asset classes for Swiss investors over a ten-year horizon. Depending on the market segment, expected annual returns range from around 4 percent to just under 7 percent in Swiss francs.
