Are Switzerland’s pensions too high?
The Swiss pension system is in danger of collapse. At the same time, Swiss retirees get higher pensions than almost anywhere else in the world. Is the country due for a reality check?
The Swiss are a nation of happy pensioners. A study by UBS (International Pension Gap Index) found that in Switzerland (compared with 12 other countries), generous pensions mean that people must save the least for their old age – and that is in a country that hast the highest cost of living in the world.
Anyone in Switzerland who has been a full-time employee for their whole working life can look forward to a comfortable retirement.
Switzerland has a sophisticated pension system, which is based on three strands or ingredients: The state old-age pension provides a basic minimum pension for all. Workers also have to belong to a employer-sponsored pension fund, which is designed to maintain their existing standard of living beyond retirement. The third strand is voluntary saving by individuals, which is encouraged by tax breaks.
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