In Switzerland a huge wealth gap exists among retirees. While most senior citizens can comfortably make ends meet, one in five is living either below or close to the poverty line. Some 50,000 pensioners have no financial cushion to offset their low income.

18 comments

  3. I suppose we need some sort of additional welfare service to cover these people’s need. After all, the strength of a people is measured by the well-being of its weakest members.

    That said, I wonder how many people like this are like a couple I know, who piss away money faster than they earn it, never make any savings or investments but have a great car, and take great holidays in place of pillar 3 contributions. The wife is occasionally in tears talking to my wife about the hundreds of thousands of CHF in debt they are over car, RV, and boat purchases. At some point, one loses patience with people that make bad decisions.

    I feel bad for those that make low incomes and end up poor after a life of work, and something should exist to help them. I worry that not everyone that ends up poor after a life of work didn’t just spend all their money foolishly. I suppose at the end of the day, those who acted moronically still need help, as they are incapable of providing for themselves.

  5. If you are old and don’t have property, you are basically fucked.

    Those who have a house, pay usually just a few hundreds a month for their loan because most is paid off.

    Those without property, well, pay easily a thousand because flats got freaking expensive. And you certainly don’t have a house which you could sell for a couple of hundred thousands if things go rough.

    And the more impossible it gets for people in their 30s to buy property, the more the state will need to subsidise them once they are old. Because rents are not getting cheaper anymore.

  6. SRF made a series about retired people living in poverty, but in every story they showed, these people made some really bad and stupid decisions and are now living with the consequences of that. For example one lady started her own business at 50 years old and took out money from her Pensionskasse for that. The business failed. Another guy spent more than half of his live abroad in a country without a AHV system, meaning he didnt pay a single Rappen into his pension funds. Now he came back to Switzerland and complains about not getting enough money? Sorry it’s hard to feel empathy for these people. I am sure there are examples where people did everything right and still are struggling, I dont want to deny that.

    Edit: typos

  7. >CHF4,800 a month for the couple

    Do you now how well you could live in any sunny country with that amount? In Morocco, you’d get a house+a cook+a driver easily. Spain, Italy, Portugal, they all have more than decent health services and an already existing social circle of retirees.

  8. Can’t imagine this situation will get better.

    Rent and CoL will continue to increase and, even if wages match that growth, once you’re retired that’s it… Your pension isn’t going up to match these. There’s no appetite to appease this and no forecast for things to get better.

    Home ownership is essentially non-existent for younger generations now, so fewer and fewer people will have buttresses against the impacts of rising rent as the population ages.

    In some cantons, the proportion of properties owned by investment/stock companies is over 50%, with no reason for them to not aim to increase this over time, meaning very little reason for any rents to ever decrease under all but the most extreme circumstances – https://www.bfs.admin.ch/bfs/en/home/statistics/construction-housing/dwellings/rented-dwellings.html

    This is definitely unsustainable, but it being Switzerland, nothing will be done whilst it’s not currently a problem. Too many people will act like this is a natural supply-demand economy so it doesn’t matter, and
    also be extremely defensive of anything that might impact investment corporations.

  9. Yeah, that ain’t good. Ppl who worked and lived in Switzerland for the vast parts of their lives should be able to live a comfortable live when retired.

    I won’t be able to do that and I can see that coming 30 years ahead. I’ll likely have to move abroad when my time comes.
    But on the other hand, my parents do quite well… maybe they won’t have the time left to ruin everything they took.

  10. Frankly I couldn’t care less about any of the boomers retiring now. They fucked the whole next two generations.
    Those generations don’t even have a chance of retirement. So fuck them

  11. interesting. was under the impression that first and second pillers should be sufficient. third piller is only for those who accumalated less in first 2 pillers.

  12. Don’t worry, it will get much worse with our pension system.

    In the year 2000 there were 400 people working for 100 retirees.

    2020 it was 330 for 100.

    2040 it will bei 230 for 100.

    At the same time, any reform that wants a chance to pass basically needs to bribe everybody above 50 and by doing so wasting most of the “saved” money.

    Also the 2nd pillar is now completely controlled by the finance industry who shears off the profits and leaves the contributors with ridiculously low interest rates.

    So everything is set for desaster.

  14. Well to be fair, if you use your brain for 2 seconds it’s obvious that the system can’t work, since money will have less value and things get more expensive. No wonder a lot of old people are struggling now.

  17. NO ONE that has been working/living in this country during the last 10-20 years has any excuse for not being prepared for retirement, its literally just to easy and we have more disposable income to put towards retirement funds than any other country on earth. this is down to pure incompetence.

    My wife and i have only been in this country for 7-8 years and are already on our way in 15years to retire early at 55. putting the maximum into 2nd and 3rd pillar should be the bare minimum anyone should be doing. If you are not, you are an idiot. our own separate investment accounts will probably make even more than that. stock options from our companies will be a bonus.

    do not rely on the government, invest yourself.

    Yes i understand there are a few low income earners that cant afford to be investing 20% of their salary every month, but that is the exception in this country, not the rule.

    EDIT: and no fucking way are we staying here for our retirement, thats the stupidest decision you could possibly make, swiss citizen or not.

  18. That’d the reason I shall expatriate to neighboring Burgundy: much cheaper life and access to commodities.

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