Swiss Federal Council Raises Pension Fund Minimum Interest Rate to 2.0% for 2027

The Swiss Federal Council announced an increase in the minimum interest rate on pension fund assets from 1.25% to 2.0% effective 2027, a 75bp hike. This policy shift affects the second pillar of Switzerland's retirement system, potentially influencing pension fund investment strategies and household savings. The move signals a response to higher interest rate environment, but its market impact is limited to Swiss pension sector.

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