UBS Retirement Forum – Effects of the Pensions 2020 draft reform plans – Federal Council vs Council of States

The proposal of the Council of States to reform Swiss pensions is less extensive than that of the Federal Council, as it would merely reduce the AHV financing gap to around CHF 654 billion, or 111% of GDP, compared with the Federal Council's proposed reduction to CHF 482 billion (82% of GDP). Both draft plans are a step in the right direction, although the heavy burden of restructuring the pension system will be borne primarily by younger and future generations. The greatest risk to these generations lies in the rejection of both proposals.