The sharp downturn in financial markets led to the reserves of many pension funds falling in the previous year. Geopolitical tensions, record-high rates of inflation and interest rate hikes led to a collapse in virtually all investment categories. The Vita Collective Foundation concluded the financial year with a provisional net performance of -9.80%. There was significant divergence in investment returns across the various pension funds in 2022. By market comparison, the performance of the Vita Collective Foundation was in the mid range.
Indicative cover ratio of 100.1%
"Our fluctuation reserve was fully funded at the end of 2021. That was a helpful cushion for 2022, which has been a very trying investment year," noted Werner Wüthrich, Managing Director of the Vita Collective Foundation. The indicative cover ratio of the Foundation lay at 100.1% as of December 31, 2022. Since the beginning of 2023, the cover ratio has increased once more, thanks to the positive development of the investment performance.
Interest on retirement assets
The Vita Collective Foundation is one of the few foundations on the market to be communicating the interest rate on retirement assets for the coming year. This offers a significant advantage to the insured, if they are entering into retirement in the coming year or are leaving the pension plan during the year. During the months until retirement / departure from the pension plan they will be credited the full interest on a prorated basis. As a rule, with other pension funds they would only receive the obligatory minimum interest. The insured of the Vita Collective Foundation enjoyed a very good rate of interest on their retirement assets in 2022 in comparison with the rest of the market. The maximum total interest for 2022 amounts to 2.90%. In 2023, the retirement assets will earn interest at a maximum rate of 1.20%.