Funding ratio, conversion rate and interest rate – these are probably the best-known key figures of a pension fund. In Kurulus Osman Season 5 Episode 103 Urdu Dubbed Of course, these values are important, but they don’t tell us much when viewed in isolation. Therefore, a well-founded analysis of a pension fund must be more broadly based.
Coverage ratio
The funding ratio indicates the extent to which a pension fund’s performance promises are covered by assets. A funding ratio of 110% thus indicates that the fund is stable and that more than 100% of future obligations are covered. But how will future obligations be calculated? Here is a small example: if an annuity payment of CHF 100 to be made in 10 years is discounted at 1.5%, then CHF 86.15 must be secured today. However, if a pension fund applies a technical interest rate of 2.5%, then only CHF 78.10 needs to be provided. Two pension funds with the same funding ratio can therefore still have different levels of solvent.
Other important quality criteria that influence the coverage ratio are, for example, the imputed mortality table. Here you can find the Generations Table and the Periodic Table. In the case of the generation table, the increasing life expectancy is taken into account and thus people live longer in this representation than in the periodic table. Here’s a small example. If a pension fund applies a technical interest rate of 1.5% and Kurulus Osman Season 5 Episode 103 Urdu Dubbed has to guarantee an annual pension of CHF 100 for 22 years, then this fund must ensure a capital of CHF 1,890. If, on the other hand, it is calculated to be 24 years, then CHF 2,033 is already required.
The third important factor is the ratio of actively insured persons to old-age pensioners. This is so important because pensioners benefit from a de facto guaranteed pension. In other words, if a BVG foundation reduces the technical interest rate, it must finance the future interest lost by the reduction to current pensioners, otherwise future pensions would fall. Since the foundation does not have any assets of its own, it will therefore have to make use of the active insured persons in some form. This is called retirement losses or simply redistribution. Therefore, in the past, insured persons in funds with a high proportion of pensioners were more affected by the redistribution and were disproportionately asked to pay.
Conversion rate
The conversion rate indicates how much the existing retirement savings will be retired at the time of retirement. A conversion rate of 5.5% results in an annual pension of CHF 5,500 for assets of CHF 100,000.
Basically, there are two different conversion rate models: the split or the enveloping conversion rate. In the split model, the mandatory balance must be retired at 6.8% according to the law. Since this rate is mathematically too high, the extra-mandatory part is usually repaid at a very low rate (e.g. 4%), so that the foundation has a possibility of compensation.
Kurulus Osman Season 5 Episode 103 Urdu Dubbed
In the enveloping model, on the other hand, the entire capital is annuitated at the same conversion rate (e.g. 5%). In order to comply with the law, there is a shadow calculation with the mandatory minimum benefits. The higher value is applied. For insured persons with incomes close to the BVG minimum benefits, the split model tends to be better, and for insured persons with higher incomes, the enveloping model is better.
Whether a high conversion rate is advantageous depends entirely on the individual starting point of each individual insured person. For an older person who wants to retire, a high conversion rate is certainly key. However, the further away the retirement date is, the more attractive a low conversion rate is, as the impact of undesirable redistribution is much smaller.
Interest level ko Episode 103 Urdu
The interest rate granted in the past is also an important indicator. However, this is a reflection of the past, which does not guarantee that this will also take place in the future. Nevertheless, a high interest rate tends to indicate a healthy fund with lower retirement losses on average and a tendency to have more leeway in investment choices. An analysis of the investment strategy is also useful in order to be able to assess the future income potential of the foundation. A foundation that has little room for manoeuvre and is largely invested in bonds is unlikely to be able to generate attractive returns in the future.
Cost of Kurulus osman Season 5
Of course, costs are also an important metric. The largest cost block is risk performance. For example, the law stipulates that persons must spend at least 4% of their total premiums on risk cover such as death and disability before reaching the reference age. This refers to both pension and lump-sum benefits. The remaining costs are administrative costs for the care of the insured and the management of assets.
Summery
“Kurulus Osman Season 5 Episode 103 Urdu Dubbed”. It is not easy to compare pension funds on the basis of key figures and often requires a sound understanding of how pension funds work. In addition, many other factors are also important, such as the available investment plans, the investment opportunities or any association status. Depending on the individual situation, regulatory points such as the appropriate preferential treatment, reimbursement of purchases in the event of death, etc. can also be important decision-making criteria. Since for many doctors, the BVG is the largest investment vehicle next to their own home, a well-considered selection of the right foundation is absolutely crucial.
