20 years ago to acquire 10k USD you'd have spent 19k CHF
20 years later you likely to get 9K CHF from 10K USD - making it 50% lost on currency.


So overall one might have won 400% of investment over 20-years on SP500 index with two financial meltdowns and dot-com crash (either not bailed out - one would be empty handed).


now on Pillar 2A side - The minimal interest rate is supposed to reflect market conditions from a relatively risk averse perspective

Table 33: Evolution BVG minimum interest rate
1985 - 2002 2003 2004 2005
4% 3.25% 2.25% 2.5%


Now, as far I remember I had 6% interest rates guaranteed until 2010 or so .. and zero risk - which model fits better is personal choice - secure&safe vs rock&roll investment.

Uploaded document I have found that may be of help also looking beyond pure investment position.

Attached Files

HP-2005-Buetler-2.pdf (824.4 KB, 27 views)

The 6% is an annuity rate, not a growth rate so if you live 16 2/3 years you get the original sum without any growth. Being that life expectancy for a man aged 65 was 18.8 years in 2010 in CH it's hardly a good return. Life expectancy now would be 20 years.

I still think the best use of pillar 2 is to pay off the mortgage.

you just made me look back into my digitalised paper of 2A from back 2010 - and it's "growth rate" at leat for me - as compounded annualised rate of growth .[deleted]... strange numbers - when compared against current 2A it's like ... 3x less I be getting when retired ...hmmm.. likley won't make there with COVID and constant visits to fridge anyway so be it .

I guess 2A is different by provider and negotiated by company so milage may ...