Role models for us?: Retirement conditions are better in 10 countries than Switzerland

class=”sc-29f61514-0 icZBHN”>

Switzerland is actually used to ranking highly in terms of location attractiveness, prosperity or quality of life in cities. Switzerland is once again a long way off from getting to the podium when it comes to the pension provision. The Global Retirement Index didn’t even make it into the top 10 in 2023. The CFA Institute and consulting firm Mercer have extensively tested the adequacy of retirement benefits, system sustainability and integrity in 47 countries. Integrity means a well-functioning private sector in procurement.

Switzerland ranks only 11th, so there is plenty of room for improvement in its pension system. Here’s an overview of what makes the top 10 better.

Having your own apartment can significantly improve your financial situation in old age: If you have constantly paid off your mortgage, you can expect low housing costs. Moreover, you do not face the risk of being kicked out of the apartment you rent and having to move to a much more expensive apartment. The ownership rate in the Netherlands, which has the best pension system, is 70.6 percent. In fact, Iceland, which ranked second, reached 80 percent. All of the countries in the top 10 have rates between 59 percent (Denmark) and 89 percent (Singapore). Switzerland is far behind with 36 percent.

According to the study’s authors, the sustainable financing of the Swiss pension system could be improved by a higher retirement age. In Iceland, Israel, the Netherlands, Denmark and Norway, employees retire at age 67. In most of the top 10 countries, retirement age is linked to life expectancy. The retirement age in Denmark is expected to rise to 70 by 2040. As it is known, the retirement age in Switzerland is 65. It is highly doubtful whether the population will see the increase in retirement age as an improvement in the pension system.

Swiss households were allowed to blame themselves for being world debt champions for many years. In no other country do private individuals owe so much in absolute terms. But there’s no need to panic: in most cases, the debt stems from home ownership. As soon as the owners retire, repayment of the mortgage consumes a large portion of the provision. In Finland or Israel, private debt is much lower, although the ownership rate is much higher. So how to prevent property prices from rising so much faster than wages in Switzerland?

Source :Blick