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.