Good luck to pension funds: foreign pensioners are drawn to their hometowns

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The financial situation of Swiss pension funds continued to deteriorate last autumn. Some people no longer believe that the pension system will still be functional when they reach their retirement age – even if there is almost no tangible evidence of it.

This is already leading to the fact that many employees are fully paid out of their retirement capital when they reach retirement age. But they also take on the “retirement risk”: if they get old, their pension capital may already be depleted and they cannot expect any other benefits from their pension funds. This isn’t bad for pension funds, as they carry less risk in an increasingly older society.

Foreigners are drawn to their homeland

Almost a third of AHV retirees live abroad, as pension fund specialist Josef Hunkeler noted in “Infosperber.” Less than 8 percent are Swiss. About 80 percent of foreign AHV buyers go abroad, with many returning to their hometowns. However, the cost of pensions abroad accounts for just over 13 percent of actual pension costs.

Many retirees have a 2nd pillar of retirement capital paid in full, not as a monthly pension. Approximately 1.6 million people have chosen this option since 2004. This is “2. Pillar» is paid as a pension.

Swiss pension funds doing well

Funded by capital «2. Column » In Switzerland, Hunkeler finishes.

Swiss pension funds are in a much better position than demographic-based doomsday prophecies suggest. There were 3.8 “active” retirees in 2004, and 3.6 in 2021.

Source :Blick