The population is ageing (graph)
Productivity growth will be the main driver of GDP growth in the years ahead
Rising public expenditure will entail fiscal challenges: Change in expenditure from 2019 to 2060
Ageing is likely to be uneven across cantons: Ratio of 65+ year-olds to total permanent resident population
The relative importance of each pillar changes with the level of income
Switzerland’s pension system is relatively sound
Expected duration of retirement will become one of the highest in the OECD
Mandatory pension contribution rates are relatively low
Swiss pension assets are amongst the largest in the OECD
The expected replacement rate from mandatory schemes is relatively low: Per cent of individual earnings for an average earner
Lowering the conversion rate will make voluntary saving more important
The composition of pension fund assets changed after the global crisis
The household saving ratio is high
The gender gap in pensions is relatively high
The household saving ratio has increased across the income distribution
Tax advantages from pension contributions benefit higher-earners
Labour participation is high until age 65
The effective retirement age has flatlined in Switzerland
Early retirement is receding but remains common
Involuntary retirement is relatively high
Reforms could alleviate economic effects of the rising dependency rate
The tax mix is tilted towards direct taxation
Switzerland’s value-added tax rate is the second-lowest in the OECD
The property tax mix differs considerably from the average OECD country
The Swiss health care system is high quality but costly
Curative care and long-term care needs drive higher costs at older ages
Public health spending will rise and cost containment is key
Insurance premia and out-of-pocket payments have risen substantially
Cantonal policies lead to large differences in insurance costs
The use of generics is still low
Informal care is less common than elsewhere and typically low intensity