Liechtenstein’s pension funds generated an average investment return of 3.2 per cent in the past year, announced the Financial Market Authority Liechtenstein (FMA) in a statement. A return of only 0.1 per cent was generated in the previous year.
These higher returns had a positive impact on the coverage ratio of the insurance institutions, according to the FMA.
On average, the ratio last year was 105.3 per cent. In 2015, it reached only 103.8 per cent. 21 of the 22 pension funds overseen by the FMA had a coverage ratio of over 100 per cent.
Interest on the savings of active insured persons fell by 0.5 per cent compared to the previous year to 1.3 per cent. The conversion rate was also down in the same period, from 6.2 to 5.9 per cent.
The FMA expects the current interest environment to endure. Low interest could “become the new norm”, according to the statement.
At the end of 2016, a total of 40,644 people were insured with Liechtenstein pension funds. The benefits paid out by the funds amounted to 176.8 million Swiss francs. Revenue generated from employer and employee contributions totaled 384 million francs.