Tag Archives: Personal finance

On 26 September 2024, The Swiss National Bank (SNB) announced further eased its monetary policy by lowering its key rate for the third time in a row by 0.25% to 1%. SNB Bern © SNBThe SNB started cutting its key rate before the European Central Bank (ECB) and the US Federal Reserve (Fed). It first cut the rate in March 2024 from 1.75% to 1.50%, then again in June 2024 to 1.25%, and then this week to 1.00%. The Fed made its first cut in September 2024 from 5.25% to 5.00%. While the ECB cut...

On 22 September 2024, the Swiss will vote on two popular initiatives. The first is the biodiversity initiative “For the future of our nature and our landscape”. The second is on a plan to reform Switzerland’s occupational pension system. Photo by Andrea Piacquadio on Pexels.comReform of Switzerland’s pension system is an increasingly pressing issue given the predictable demographic shift underway. Occupational pensions (2nd pillar) are pots of money built up from salary deductions....

This week, Switzerland’s parliament voted in favour of spending an extra CHF 4 billion on the nation’s military, bringing annual military expenditure to 1% of GDP earlier than planned, reported RTS. The extra CHF 4 billion will bring the total budget to CHF 30 million spread across the period from 2025 to 2028. Photo by Mickäel O’Neill on Pexels.comThe Federal Council, Switzerland’s seven member cabinet, had wanted to cap military spending for the period at CHF 26 billion. However,...

Switzerland’s federal government is spending more money than it collects in taxes. This week, a federal commission set out options for spending cuts, reported SRF. The problem is than some of them would involve less federal money going to cantonal governments. Bern © Victor Torres | Dreamstime.comSwitzerland’s Finance Minister Karin Keller-Sutter hopes to break the deadlock around balancing the federal budget. To do so, she has called on a group of experts for advice. This week, a...

Since 1990, the cost of travel by car has risen 24%, while travel by public transport has leapt by more than 100%, reported SRF. © Hai Huy Ton That | Dreamstime.comSince 1990, fuel prices and car prices have fallen, while the cost of tickets to ride public transport have consistently risen. According to Stefan Meierhans, Switzerland’s chief price watchdog, the rising cost gap is creating the wrong incentives. Why take a train when a car is cheaper? Another challenge is the way the...

Electricity prices will fall across most of Switzerland next year. The average price drop across the country will be around 10%. However, the drop will vary by location and prices will rise in a few regions, reported RTS. Electricity Meter © Fluffthecat | Dreamstime.comIn some places the price will drop by more than 20%. In a few it will rise by more than 30%. The 10% average price drop follows hikes of 27% in 2023 and 18% in 2024, a total jump of around 50%. Average savings in 2025...

Last week, the government in Bern broadly supported a plan to force all property owners to contribute to the cost of earthquake repair. This week, a Swiss homeowners association rejected the idea, reported SRF. Earthquake © Olga Demina | Dreamstime.comThe government plan is a response to the attitude of many home owners towards insurance. Only 15% of buildings are insured against earthquakes in Switzerland, a nation at risk, according to a government estimate. If some homeowners won’t...

This week, Switzerland’s federal government announced future increases to state pensions, disability benefits and family support benefits, reported RTS. © Swisshippo | Dreamstime.comThe 2.9% increase is the first adjustment since 2009. It means monthly pension and disability payments will rise on 1 January 2025 by between CHF 35 and CHF 70, depending on the level of salary based contributions. Family support benefits will rise by CHF 15 a month for young children and by CHF 18 a month...

Over time, salaries increase with inflation. However, if tax deductions and allowances are not adjusted the percentage of income taken in tax rises, a phenomenon known as tax creep or fiscal drag. Given recent inflation, Switzerland’s federal government announced this week that it was increasing allowances and deductions, reported SRF. Photo by Pixabay on Pexels.comFrom 2025, the child and support allowances will rise from CHF 6,700 to CHF 6,800. And married couples will start paying...

Switzerland sometimes feels like the land of insurance. Numerous costs that are covered by taxes in many places come instead in the form of compulsory insurance in Switzerland. However, some risks remain uncovered by compulsory insurance. Earthquakes are one such risk. This week, a plan to force all property owners to contribute to the cost of earthquake repair received broad support in Bern. © GoranJakus | Dreamstime.comOver the years, Switzerland’s federal government has tried and...