The conversion rate is used to calculate the annual pension from the retirement savings in occupational retirement provision. The basis for it includes, but is not limited to, the statistical life expectancy at the time of retirement and the guaranteed minimum interest rate, which is in turn based on the expected returns for the pension capital in the financial markets. The statutory minimum conversion rate determines the minimum permissible value of this percentage in the obligatory part of occupational retirement provision (according to the BVG). The minimum conversion rate is set by legislators. It is significantly higher than it should be mathematically because the capital required for financing a pension is insufficient based on the minimum conversion rate for an entire lifetime. The conversion rate of 6.8 percent includes a guarantee that is no longer realistic at the current time. In fact, a conversion rate of 6.8 percent requires a return of approximately 5 percent or a guaranteed minimum interest rate of 4 percent, which is something that has not been achieved for a long time. Other rules apply for the non-obligatory component of occupational retirement provision. In this area, foundations are allowed to set the amount of the conversion rate themselves. Consequently, significantly lower conversion rates can be set for the non-obligatory component.