Here (Switzerland) everyone uses: ( 65% of current income - state pension entitlement ) / 0.03
- 0.03 or 3% is the minimum return required by law on a pension fund (It is illegal for a pension fund to have a negative return)
- the outcome is made up of your company pension and private savings.
- the next step is to reduce the amount by the project value of your pension savings
- Usually a company pension accounts for 70% to 90% of the savings about, depending on the pension and years of service
At the moment I'd say the Swiss Governments projected return is probably the top end of the line, so I would not be willing to go beyond 3% in calculating the project value of pension fund savings.
- 0.03 or 3% is the minimum return required by law on a pension fund (It is illegal for a pension fund to have a negative return)
- the outcome is made up of your company pension and private savings.
- the next step is to reduce the amount by the project value of your pension savings
- Usually a company pension accounts for 70% to 90% of the savings about, depending on the pension and years of service
At the moment I'd say the Swiss Governments projected return is probably the top end of the line, so I would not be willing to go beyond 3% in calculating the project value of pension fund savings.