Switzerland 2011

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 following table shows Switzerland’s position when compared to the 15 other countries and some of the indicators that either scored relatively well or poorly.

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
• increasing the state pension age over time
• introducing a universal requirement to permit individuals to retire gradually whilst receiving a part pension, if recent law changes are not sufficient to achieve this goal

The Swiss index fell from 75.3 in 2010 to 72.7 in 2011 due to a reduction in both the adequacy and sustainability sub-indexes.  The main reasons are the reduced net replacement rate as calculated by the OECD and a decline in each of the first three sustainability indicators.