WHEN WILL THE SWISS “PENSION PARADISE” COME TO AN END?

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Switzerland has a sophisticated pension system, but, with an aging population and low interest rates, it needs fixing. On Tuesday, the Swiss Employers’ Association made an agreement with trade unions to reduce the so-called conversion rate that determines the yearly pension payout. According to Franz Wenzel, institutional solutions strategist at AXA Investment Managers, this rate will need go even lower, something that future pensioners must take into account.

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