Tag Archives: Personal finance

The rules around state pensions for widows and widowers are significantly different, something deemed discriminatory by a ruling from the European Court of Human Rights (ECHR) in 2022. To remove the discrimination, the federal government plans to cut pensions for widows to bring them into line with those for widowers. Photo by RDNE Stock project on Pexels.comCurrently, women get a lifelong widows’ pension when their husband dies. Bereaved husbands only get one until their children reach...

According to the Economist’s annual ranking of cities, Zurich came out top in the report published on 29 November 2023. Photo by Ömer Gülen on Pexels.comTied in first place this year were Singapore and Zurich. Singapore is no stranger to the top spot: it has ranked as the priciest place to live in nine of the past 11 years. Groceries, alcohol and clothing in the international business hub can cost a small fortune, wrote the Economist. The cost of a certificate needed to own a car (which...

Switzerland, a nation with a reputation for well managed finances, like much of the world is struggling to cover rising costs. Projected spending on the military and state pensions are key challenges. Spending on refugees and healthcare are additional head winds. The federal government has been looking hard for savings. However, this week talk turned to the possibility of higher taxes, reported RTS. © J0hnb0y | Dreamstime.comAt around 17% of GDP, Switzerland federal debt is relatively low...

On 1 December 2023, Switzerland’s Federal Housing Office announced the reference mortgage interest rate for rental agreements will rise from 1.50% to 1.75%. © Denis Linine | Dreamstime.comThe reference rate is mentioned in many Swiss tenancy agreements. If the rate goes up landlords can increase rents. If the rate goes down tenants can demand lower rent. The rate is based on the average mortgage interest rate. Essentially, total mortgage interest paid divided by the total outstanding...

Since 1999, the cost of health insurance has more than doubled. Basic compulsory insurance is now 2.36 times what it was in 1999, while complimentary optional insurance is up by 30%. Overall, disposable income has been reduced by 5.3% by the rising cost of insurance over the last 25 years. Photo by Andrea Piacquadio on Pexels.comSix of the last 25 years had no negative impact on disposable, one had a positive impact and 18 reduced it. 2023, which was among the among the negative years,...

The number of tenancy disputes in Switzerland jumped 42% in the first half of 2023 compared to the second half of 2022, reported the government this week. Photo by Alex Green on Pexels.comAcross Switzerland a total of 17,519 tenancy or lease arbitration proceedings were initiated between January and June 2023. The rising number of disputes follows rent hikes, often triggered by increases in Switzerland’s rent reference rate, a rate that tracks the average mortgage rate, a cost borne by...

Switzerland, where only 36% of the population own their homes, is sometimes referred to as a nation of renters. So when rents rise, as they have recently, the subject becomes political. On Wednesday, Switzerland’s Federal Council announced that it was looking for ways to temper short term rent increases. © Yiu Tung Lee | Dreamstime.comAcross Switzerland, 64% of the population was renting their homes in 2020. The percentage of people renting ranged from 85% in Basel-City to 42% in the...

This week, the newspaper Tages-Anzeiger reported that Switzerland’s federal government is working on reducing the tax free allowance granted to people returning home from a shopping trip abroad. The amount is currently CHF 300 per person per day. The government is looking at cutting this allowance to CHF 150 per person per day, according to the newspaper. Photo by Andrea Piacquadio on Pexels.comThe value of any goods exceeding the allowance is subject to Swiss VAT, currently 7.7%. Within...

A report by UBS predicts average Swiss salary growth of 1.9% in 2024, set against expected inflation of 2%. If correct, real pay will be slightly lower by year end than it was at the start of the year. Photo by cottonbro studio on Pexels.comThe bank said that rising health insurance premiums will mean many workers face a loss of purchasing power in the coming year. At the same time a robust labor market and excess savings are supporting consumption. While labour shortages have eased...

Switzerland, like the UK, charges households an essentially unavoidable broadcasting fee. The money raised is used to fund public news and entertainment. However, the fee is divisive. Some view it as a necessity to ensure the public is well informed. Others see its unavoidable nature as an affront to personal liberty. A public vote to eliminate the fee in 2015 was rejected by 71.6% of voters. However, bringing the fee to the political forefront focused minds on its cost, currently CHF 335....