Pension planning How will I finance my stay in a retirement or nursing home?

That depends on how much care you need and where you live. At level 12 – the highest possible – you’d be looking at total monthly costs of CHF 10,021 in Zurich, CHF 9,540 in Zug and CHF 7,620 in St. Gallen. The statutory health insurance system and municipalities cover the greatest part of that. The monthly costs you’d have to bear yourself would be CHF 648 in Zurich and St. Gallen and CHF 324 in Zug.

That’s only the cost of care, I’m afraid. Room and board are more expensive. Rental costs often reach several thousand francs per month and have to be covered entirely by the residents of the retirement or nursing home. An example that comes to mind is a room in a well-known nursing home in Zug: It costs CHF 4,868 a month. Add to that support costs and the above care costs, and you’re looking at about CHF 6,900 per month that must be covered privately.

You can start preparing early by setting money aside regularly should you ever need to go into a nursing home. If you end up not needing the accrued capital, then your heirs would get it. Alternatively, there is nursing care insurance.

Just a few days ago, I asked for a quotation from one of the leading insurance providers: If you’re 65 and want to take out nursing care insurance as pure risk insurance, you’d pay a CHF 145 monthly premium. If you need nursing home care, the insurer offers a CHF 200 daily allowance with a waiting period of one year.

Hardly anyone passes the medical exam shortly before the age of retirement. There are products where the rate is set according to the entry age, but those are expensive. The policy is more affordable if you address the subject early on.

People who can’t cover the basic costs of living through their pensions, income and wealth attrition are supported by public authorities. That’s the case for 39 percent of nursing home residents today. Everyone drawing AHV or IV benefits and domiciled in Switzerland is eligible. Those who are neither Swiss nor EU citizens must have lived in Switzerland for at least 10 consecutive years to be eligible for supplementary funds.

People who can’t cover the basic costs of living through their pensions, income and wealth attrition are supported by public authorities. That’s the case for 39 percent of nursing home residents today. Everyone drawing AHV or IV benefits and domiciled in Switzerland is eligible. Those who are neither Swiss nor EU citizens must have lived in Switzerland for at least 10 consecutive years to be eligible for supplementary funds.

No, any amount advanced on inheritance or by way of a gift is always counted against the assets of the person in need of care. Until supplementary benefits are claimed, CHF 10,000 is deducted from advances on inheritance and gifts.

This does in fact act as a disincentive and leads to a rise in supplementary benefits. It falls under the competence of politicians to correct this. In Bern, they’re discussing raising the barriers for supplementary benefits as well as enacting benefit cuts. But this program would place a burden on the older generation.

Avenir Suisse suggested mandatory individual nursing care insurance: from age 55, assets would be accrued to pay for later care and support costs. If these funds aren’t needed, they become part of the estate.ey and our pension system. This would certainly benefit the state more.