Occupational pension provision in Switzerland will undergo profound changes in 2026. The figures speak for themselves: the number of pension funds has fallen by around a third over the last ten years – from over 2,000 to 1,320 institutions. This decline is a reflection of a structural change that goes far beyond mere numbers. More and more companies are abandoning their own pension schemes and joining collective or joint foundations.
There are many reasons for this: increasing regulatory requirements, pressure to improve efficiency, digitalisation and the desire for economies of scale.
Jon Samuel Plotke, CEO
ASSEPRO AG
Consolidation, individualisation, innovation – success factors in the Occupational Pension Plan market
Increasing regulation and a shortage of skilled workers make economies of scale and synergies indispensable in the BVG market. Consolidation is not a threat, but a clear opportunity – competence and efficiency are becoming decisive factors. Successful strategies in the SME segment are those that focus on the needs of SMEs. Flexibility and speed at an affordable price is the motto. The future belongs to individualisation. Digitalisation is the key to this – it is what makes personalised offers efficient in the first place. Without digital processes, individualisation is too costly and, given the shortage of skilled workers, unfeasible. ESG remains relevant, but is no longer a distinguishing feature. Demographic changes call for new approaches: technology, flexible working models and location-independent structures create access to scarce talent.
Martin Baltiswiler
Leiter Vorsorge
ASSEPRO AG
At the same time, the BVG system is proving resilient. The average net asset performance of pension funds was 5.1% in 2023, and the coverage ratio rose to 113.5%. The retirement assets of active insured persons earned an average interest rate of 2.16% – well above the BVG minimum interest rate of 1.00%. These figures demonstrate the stability of the system, but do not hide the challenges that are emerging behind the scenes.
A particularly revealing trend can be seen among new pensioners: in 2023, 41% opted for a lump sum payment, 40% for a pension and 19% for a combination of both. This development points to a growing need for flexibility and self-determination – and presents providers with new challenges.
The distribution of assets is also noteworthy: at the end of 2022, Swiss pension funds managed a total of CHF 1,066 billion. Of this, CHF 866 billion was accounted for by the 334 pension funds analysed. The range of investment returns over ten years is up to 25 percentage points – an indication of the increasing importance of professional investment strategies and risk management.
Market consolidation is not only a consequence of regulatory developments, but also a strategic process. It changes the balance of power and creates new dynamics.
The question is no longer whether the market is changing, but who can hold their own in this change.
What does this development mean for providers? Who benefits from consolidation – and who loses relevance?
👉 In the next section, we analyse the winners of the new market structure and show which players are positioning themselves strategically.
