On average, retirees currently spend 1 to 1.5 years in a nursing home before they die. The older you get, the higher the probability. One-sixth of 85-89-year-olds and one-third of those over 90 live in a home.
Despite the high probability of staying in a nursing home sooner or later, only a small percentage of Swiss retirees are seriously considering spending the last stage of their lives there. This is demonstrated by a recent, representative study by life insurance company Swiss Life.
Reality of life is underestimated in old age
Swiss Life interviewed more than 2,000 people of all ages for the study. Only 6 percent of people over the age of 65 answered “completely correct” to the statement “I am likely to need care in my old age”. Another 14 and 20 percent, respectively, said “appropriate” or “quite appropriate.”
A much larger 60 percent of retirees underestimate the possibility of staying in a nursing home or do not answer the question. “The fact that so many have not answered the question shows that the reality of life in old age tends to be underestimated,” says study author Andreas Christen, 37.
Only half can afford nursing homes
People are even more ignoring the reality of nursing home costs: only 34 percent say they “consider intensely what a possible stay in a nursing home will cost.”
It is possible for retirees to deliberately withhold care costs to protect themselves – because they are substantial. Less health insurance premiums cost those affected an average of 6,000 francs a month in a nursing home.
Only half of them have enough money to cover these expenses out of their own pocket. Others depend on additional services.
Ignorance becomes a boomerang for heirs
Despite the dire costs – spending an average of CHF 72,000 if you spend a year in a nursing home before you die – most retirees have something to inherit at the end of their lives.
At the turn of the millennium, three-quarters of retirees left a legacy, according to an earlier study based on tax data from the Canton of Zurich. More than half left behind more than 100,000 francs.
However: The fact that most people do not take care of their maintenance costs in advance can create a boomerang effect. “Heirs may encounter nasty surprises,” warns Christen. As the law changed in 2021, anyone who receives additional benefits during their lifetime but inherits more than 40,000 francs must repay the additional benefits.
Young people expect retirement age to rise
Christen advises retirees to take a more proactive approach to their retirement and estate planning so they become aware of the financial realities of old age.
This becomes even more important as the financial outlook begins to cloud over in retirement. The current generation of retirees is enjoying a golden retirement. However, due to demographic change, retirement is becoming increasingly difficult to achieve. 62 percent of those under the age of 35 assume they will have to work longer than they do until they are 65.