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Once a year your pension fund sends you a pension certificate (Vorsorgeausweis). Usually a PDF, usually in German, usually filed unread. Every year VZ examines more than 30 large collective foundations and lays bare how far apart the numbers that matter really are. The study is German-only and printed. Here it is in plain English, with the charts that show what counts.
Source: VZ Pensionskassen-Rating 2026, figures 4, 8 and 12.
What the conversion rate is, in one sentence
The conversion rate (Umwandlungssatz) turns your accumulated pension capital into a lifelong annual pension. Capital times conversion rate equals your yearly pension. With CHF 500’000 and 5% that is CHF 25’000 a year. At 6% it would be CHF 30’000. Same savings, different fund, different pension.
How wide the range really is
Across all funds surveyed, the weighted conversion rate for men at 65 runs from 6.75% (best placed) down to 4.73% (last placed). The average is 5.44% for men and 5.52% for women. Between the best and the worst fund, the annual pension comes out roughly 30% lower on the same capital.
| Rank | Pension foundation | Conversion rate |
|---|---|---|
| 1 (best) | FIP – Fonds interprofessionnel de prévoyance | 6.75% |
| 2 | Spida Personalvorsorgestiftung | 6.20% |
| 3 | La CIEPP | 6.00% |
| … | Average of all funds (men) | 5.44% |
| last | last-placed fund | 4.73% |
Extract from the top 15, weighted, men at 65. Source: VZ Pensionskassen-Rating 2026, figure 8.
Why 5% can be generous at a 1.25% technical rate
Your certificate often shows two interest rates, and they do two different jobs. The projection rate (often 1.25%, the BVG minimum rate for 2026) projects your capital forward to 65. The technical interest rate is the fund’s assumption about the future return on the capital backing pensions in payment. Only the technical rate is linked to the conversion rate.
The VZ curve shows the relationship: the higher the technical rate, the higher the conversion rate the fund can afford. To justify the legal 6.8% on today’s actuarial bases you would need a technical rate above 4.75%. At 2.0% technical, the actuarially correct rate is about 4.9%.
Interest credited: the lever that is often bigger than the conversion rate
A low conversion rate is not automatically a bad plan. A fund that credits generous interest and converts cautiously easily beats one that does it the other way round. That is why VZ rates both figures, not just the conversion rate.
The reason is compound interest (calculator in German). If your certificate is projected at the 1.25% minimum but a well-placed fund actually credits more, your stated pension is understated. The example below compares a projection at 1.25% against interest credited at around 3% a year, roughly mid-field in the VZ comparison.
The six VZ criteria at a glance
VZ rates every fund on six criteria. The ranges show how different funds can be that all look “solid” on paper.
| Criterion | What it measures | Range 2026 |
|---|---|---|
| Funding ratio | assets against obligations | 105.1–127.6% |
| Conversion rate | capital into lifelong pension | 4.73–6.75% |
| Interest credited (3 yrs) | interest on retirement savings | 1.17–6.67% |
| Administration costs | running costs per person | CHF 134–695 |
| Total costs | administration plus asset management | CHF 519–1’997 |
| Restructuring capacity | share of pensioners, share of mandatory savings | pensioners 3.8–50.6% |
Source: VZ Pensionskassen-Rating 2026, figures 4, 8, 12, 13, 15, 16 and 18. Values as at 31.12.2024 and 2025/2026.
How to read your own certificate
The useful test is your own calculation, not the average. One evening is enough, and you do not need to buy anything.
- Find the conversion rate. Is it shown only for the mandatory part, or as one enveloping rate for your whole balance? If the enveloping rate is below 6.8%, the mandatory shadow calculation must be shown separately.
- Find the projection rate. Usually 1.25%. Your projected pension is based on it, and is therefore deliberately cautious.
- Ask for the interest actually credited, for 2023, 2024 and 2025. A three-year average tells you more than one record year.
- Multiply projected capital by conversion rate. That is your estimated annual pension.
- Compare it with the spending level you want. The difference is your gap, not the average’s.
The third pillar is the part you fill yourself. How much tax pillar 3a actually saves you is in the pillar 3a calculator, and how the providers compare is in the pillar 3a comparison.
Limits of the study, before you conclude anything
Frequently asked questions
What is a good conversion rate in 2026?
There is no fixed threshold. For orientation: the weighted average of all funds VZ surveyed is 5.44% for men and 5.52% for women in 2026, and the range runs from 4.73% to 6.75%. What counts is the pension from capital times rate, not the rate on its own.
Is a lower conversion rate bad?
Not necessarily. A fund that credits generous interest and builds more capital can deliver a higher pension despite a lower conversion rate than one with a high rate and low interest. That is why VZ rates both.
Why is the technical rate not the projection rate?
The projection rate (often 1.25%, the BVG minimum) projects your capital to 65. The technical rate is the fund’s return assumption for the capital backing pensions, and it determines what conversion rate is actuarially sustainable. Two numbers, two jobs.
Where do I find my conversion rate?
On the pension certificate (Vorsorgeausweis) your pension fund sends once a year. It is often shown separately for mandatory and extra-mandatory savings. If it is missing, you can request it from the fund.
Is this the original VZ study?
No. VZ publishes the Pensionskassen-Rating in German, in print. This page is Investing Hero’s English digest of it: the figures are VZ’s, the translation and the charts are ours. Any error of translation or interpretation is ours.
Source: VZ VermögensZentrum, Pensionskassen-Rating 2026 (study, May 2026), figures 4, 6, 8, 12, 13, 15, 16, 18. Original published in German; English digest and translation by Investing Hero. Charts redrawn by Investing Hero from the published values. Technical rate to conversion rate relationship per actuarial bases BVG 2025, generational table. Last updated: August 2026. Educational content, not advice.