Pensions: the pension is getting lower and lower
Keystone-SDA
Listen to the article
Listening the article
Toggle language selector
Generated with artificial intelligence.
Those who retire after a lifetime of work are receiving less and less money from the Swiss pension system. The combined old-age and survivor’s pension (OASI) and pension fund payouts have fallen by an average of 16% since 2002.
This content was published on
August 9, 2025 – 13:47
This is the conclusion reached in an analysis published today by the financial services provider VZ VermögensZentrum.
While OASI payments have tended to remain constant over the years and will increase slightly with the introduction of the 13th monthly payment from 2026, pension funds have massively reduced their benefits: pension payments are 40% lower than in 2002. The reasons are low interest rates that may soon turn negative again, rising life expectancy and the failure of the occupational pension reform.
+Get the most important news from Switzerland in your inbox
In theory, pensions should pay out 60% of the final salary but this is no longer the case. Concretely, a person currently earning CHF100,000 per year will receive about 51% of his or her final salary in the form of a pension at retirement. With an income of CHF150,000 the share drops to as low as 42%.
Reality is also often more bitter than expectations: pension expectations are systematically too high, warns VZ Vermögenszentrum on the basis of a survey. On the other hand, erosion is evident: a 55-year-old man with an income of CHF120,000 in 2002 could still count on an annual pension of CHF74,920; in 2025 this figure is only CHF62,860.
The downward trend is also expected to continue. Among other things, the latest cut in the guide rate to 0.0% by the Swiss National Bank (SNB) and the further increase in life expectancy will weigh heavily.
Adapted from Italian by DeepL/ac
How we work
We select the most relevant news for an international audience and use automatic translation tools to translate them into English. A journalist then reviews the translation for clarity and accuracy before publication.
Providing you with automatically translated news gives us the time to write more in-depth articles. The news stories we select have been written and carefully fact-checked by an external editorial team from news agencies such as Bloomberg or Keystone.
If you have any questions about how we work, write to us at english@swissinfo.ch.
More
US tariffs: Pharma firms not planning job cuts in Switzerland
This content was published on
Aug 10, 2025
The additional investments in the US will not lead to a reduction in jobs in Switzerland. This is according to pharmaceutical giant Roche, which expects the number of employees to remain stable in the current year. The position of Novartis is similar.
Read more: US tariffs: Pharma firms not planning job cuts in Switzerland
More
Switzerland is closely monitoring three livestock diseases
This content was published on
Aug 10, 2025
The spread of Lumpy skin disease, Bluetongue and African swine fever are keeping Swiss veterinary authorities on the alert.
Read more: Switzerland is closely monitoring three livestock diseases
More
Swiss writer wins European Prize for Political Culture
This content was published on
Aug 10, 2025
On Saturday, the Hans Ringier Foundation awarded the 91-year-old Zurich writer Adolf Muschg the European Prize for Political Culture.
Read more: Swiss writer wins European Prize for Political Culture
More
Army to withdraw from buried Swiss village
This content was published on
Aug 10, 2025
Active in landslide-hit Blatten since June 27, the Swiss army will be leaving the area on Monday evening
Read more: Army to withdraw from buried Swiss village
More
Swiss government working with firms to overcome high US tariffs
This content was published on
Aug 10, 2025
The Swiss delegation that travelled to Washington has returned from talks on tariffs in the United States. The negotiations are now being conducted under the aegis of the government and the federal administration, according to Seco.
Read more: Swiss government working with firms to overcome high US tariffs
More
Tax on streaming giants invested in Swiss films and series
This content was published on
Aug 10, 2025
Figures for 2024 show, they will have to spend CHF30.1 million (about $37 million) on local productions.
Read more: Tax on streaming giants invested in Swiss films and series
More
Swiss and American parliamentarians meet in Geneva
This content was published on
Aug 9, 2025
Although this meeting is scheduled to take place twice a year regardless of the current crisis, tariffs were discussed.
Read more: Swiss and American parliamentarians meet in Geneva
More
WTO improves its world trade forecast thanks to Trump’s tariffs
This content was published on
Aug 9, 2025
The World Trade Organisation (WTO) expects world trade to grow by 0.9% this year, better than expected in April. US imports surged in the first quarter as a result of Donald Trump’s tariff announcements.
Read more: WTO improves its world trade forecast thanks to Trump’s tariffs
More
Swiss gold exports might not face US tariffs after all
This content was published on
Aug 9, 2025
Gold exports to the United States may not be taxed after all. The White House plans to “issue an executive order in the near future to clarify misinformation regarding the taxation of gold bullion,” among other things.
Read more: Swiss gold exports might not face US tariffs after all
More
The Swiss waste 2.8 million tonnes of food per year
This content was published on
Aug 9, 2025
This corresponds to around 330 kilograms of avoidable food waste per person per year.
Read more: The Swiss waste 2.8 million tonnes of food per year