Effects of an Increase in Interest Rates on the 2nd Pillar
After more than a decade of quantitative easing, the Swiss 2nd pillar is already in a state of stress following just a few rounds of interest rate hikes. Determining the next challenges and priorities for the Swiss 2nd pillar—an industry worth a consolidated CHF 1 trillion—is of paramount importance.
SFI Prof. Olivier Scaillet (UNIGE), along with Marc Fournier, Olivier Kern, and Stéphane Riesen (all three with Pittet Associés SA) conducted, in early 2022, a well-founded analysis of the stability of the Swiss 2nd pillar on behalf of the Federal Social Insurance Office. Their work was based on individual data for the entire universe of Swiss pension funds—a novelty—and painted a broad set of outcomes based on various potential economic scenarios for the next 10 years.
Recently, the coauthors decided to update their study based on the latest (and likely further, upcoming) interest rate increases. Their new, revisited results demonstrate that while it is evident that the Swiss 2nd pillar system is fundamentally robust, certain categories of pension funds are exposed to serious risks, especially in a recession scenario.
This event will focus on a discussion of these findings as well as on how to better identify "pension-at-risk" funds and how to develop measures aimed at improving the overall stability of the Swiss 2nd pillar. The event will also feature an industry presentation by Pascal Kuchen (Copré) and a panel discussion with renowned experts from the industry and the academic world.
Datum: 21.06.2023, 18:00 - 19:20 Uhr
Organisator: Swiss Finance Institute
Ort: Zunfthaus zur Saffran
Adresse: Limmatquai 54, 8001 Zurich
Zielgruppe: Professionelle Investoren
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