Changing retirement strategy

Switzerland’s retirement system is facing significant challenges. This report outlines a comprehensive reform approach that we believe would improve intergenerational fairness and financial sustainability while addressing social challenges.

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At a glance

The report proposes a comprehensive reform of the Swiss retirement system, introducing a fully funded model with two main pillars: a state-backed defined benefit scheme to cover basic needs, and a defined contribution scheme for additional needs. This approach aims to enhance pensions for low-income earners and provide greater flexibility for all participants.
Additional proposed changes include mandatory long-term care insurance, more generous child credits, income-regressive tax incentives for voluntary savings, stricter means-testing for supplementary benefits, and a shift toward generational fairness by focusing redistribution from the wealthy to those in need.
The transition to the new system, planned for 2035, would require increased tax revenues to finance both legacy and new benefits. While the reform aims to improve adequacy, flexibility, and fiscal sustainability, it also introduces challenges such as higher benefit variability and increased reliance on financial markets.

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Swiss pension Changing retirement strategy

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