Switzerland’s retirement income system comprises an earnings-related public pension with a minimum pension; a mandatory occupational pension system where the contribution rates increase with age; and voluntary pension plans which are offered by insurance companies and authorised banking foundations.

The overall index value for the Swiss system could be increased by:

  • introducing a requirement that part of the retirement benefit must be taken as an income stream
  • reversing the preferential tax treatment of lump sum payments in comparison to pension payments
  • increasing the state pension age over time
  • increasing the rate of home ownership
  • reducing pre-retirement leakage by further limiting access to funds before retirement

The Swiss index value increased slightly from 73.9 in 2014 to 74.2 in 2015 due to a number of small changes.

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