Money for vacations, restaurants and gifts: The golden generation of retirees even keeps saving as they get older

class = “sc-cffd1e67-0 fmXrkB”>

Poverty in old age, gaps in pensions and imbalances in pension insurance are on everyone’s lips. On March 3, Swiss people will vote on the popular initiative “Vote for a better life in old age.” 13. The AHV pension is intended to improve the financial situation of retirees in the country. So how bad is it actually for people in retirement in Switzerland?

According to a federal survey, 55.8 percent of people over 65 in the country say their satisfaction with the financial situation in their households is “very high.” This is significantly higher than the 35.3 percent in the 18-64 age group. Financial satisfaction is especially low among young adults and those ages 25 to 49. The Federal Statistical Office published the figures at the beginning of 2023, along with the survey for 2021.

Satisfaction among young people is significantly low

The figures also show that only 8.5 percent of retirees say their financial satisfaction is “low” or “fairly low.” This rate is 14.7 percent in the 18-64 age group. A retiree survey by Swiss Life in 2022 revealed a similar picture: 80 percent of retirees in Switzerland were reportedly making ends meet at the time.

73 percent of Swiss Life respondents say they live in a home with “high financial satisfaction.” For comparison: Among those under 65, the rate is only 58 percent.

If you give today’s retirees 500 francs in cash, they will spend it primarily on personal luxuries, holidays, gifts or restaurant visits. This shows that basic needs are met and the situation of our retirees is good. Switzerland is one of the best countries internationally: only Denmark, Norway and Sweden have older people in a better financial situation than this country.

They own houses and rent flats

One in every two retirees owns a property. More than other age groups. For many young people, buying a home has become out of reach or only possible thanks to their parents’ encouragement. An above average number of retirees even own apartments that they rent.

This is also reflected in the wealth of the older generation: half of retired couples have a net worth of 339,000 francs. For comparison: couples under 65 have a net worth of only 49,000 francs.

And it’s not just about retirees’ assets, but also their income: Almost 40 percent of retired households do not have to tap into their savings, and even continue to set aside money in retirement!

Despite the retirement gap, women are satisfied

The golden retirement myth seems to be coming true. “I would rather talk about a golden generation,” said Andreas Christen (38) in the summer of 2022. He is a retirement expert and author of the new Swiss Life study. “The results are just a snapshot.”

It touches on growing problems in retirement provision: people are getting older, baby boomers are retiring, fewer and fewer young people are having to pay for more and more old people. A hole is being created in the provisions.

“What surprised me most was that female retirees were just as financially satisfied as male retirees,” says study author Andreas Christen. Women fare significantly worse than men in old age. The income of retirees living alone is one quarter lower than retirees. But since most people live in a couple’s household, the gender difference doesn’t matter much: partners pool their money and spend it together.

However, in the event of divorce, things can quickly become uncomfortable for men and women in old age. Mothers in particular are at risk of significant loss of pension benefits due to working part-time for many years after divorce. People with a migrant background also have a higher risk of falling into poverty in old age. Anyone who emigrates to Switzerland at age 40 pays less for a pension and therefore receives significantly less in old age.

One in five people have money problems

The pension gap for women will persist for generations: As long as women earn less and work fewer hours, they will be able to pay less into the second pillar. And as Swiss Life research shows, this is becoming increasingly important for well-being later in life. AHV remains the most important source of income for the majority of retirees, but for more than half of households the pension fund accounts for at least a quarter of income.

And today’s golden generation of retirees already has some dark spots: One in five retirees struggles to make ends meet financially. “That’s several hundred thousand people,” calculates Andreas Christen. “You need to limit yourself after retirement.” For example, affected retirees give up taking holidays, going out to restaurants, or buying fewer new clothes.

Also worth noting is that inflation over the last two years has likely worsened the situation for financially strapped retiree households. However, more recent figures are missing.

Source :Blick