Is it just because of low income?: This is the reason for the lack of trust in the pension service

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The Swiss public’s trust in pension services is not very high. This is shown by the Raiffeisen pension barometer. Despite the reform coming into force in 2024, a fifth of respondents have only deep trust in the AHV. The vast majority have moderate confidence in pension services overall. Only the third column looks a little better.

Especially the youngest people between the ages of 18 and 30 are pessimistic. A quarter have no confidence in the first pillar and things are little better when it comes to occupational pension provision. But why is this?

Almost three quarters of them have to make do with less income after retirement. This can be seen in a second survey of only people over 65. Most people (36.5 percent) said they still have 70 to 90 percent of their income available in retirement. If it is more than a quarter, it is even less. One fifth of those surveyed did not answer this question.

One problem: More than half of those surveyed cannot imagine leaving their home, even if it is very large.

Compared to the previous year, it appears that participants’ knowledge of retirement planning has decreased slightly. Only 38.7 percent describe their knowledge as average. In 2022, it was 41.2 percent. While 2.3 percent consider themselves experts, 8.9 percent do not have any knowledge about the precaution.

Uncertainty about when he will retire has increased. Almost a fifth of people don’t know when they want or can retire. A total of 8.5 percent of respondents can imagine retiring more than five years before retirement age; men much more often than women. This figure is higher than last year because the AHV reform makes early retirement easier. A total of 40 percent want to stop working at normal retirement age.

Although trust runs deep, most people rely on personal responsibility for retirement planning. Three quarters of respondents believe that each individual should take responsibility for themselves. Here too there is a difference among boys: more than a third of young people aged 18 to 30 believe that the state should bear responsibility for the consequences of inadequate retirement conditions. Only one-fifth of respondents overall share this view.

To be included in the retirement fund, a person must earn at least 22,050 francs a year. Two-thirds of respondents are in favor of setting the threshold for entry into the second column lower. There is already a reform package that will be voted on in 2024. The question remains whether this measure will increase confidence in the pension provisions.

Raiffeisen surveyed 1,052 people ages 18 to 65 for its precautionary barometer. The banking group has been conducting an annual representative survey since 2018 in cooperation with the ZHAW Faculty of Management and Law.

Source :Blick