Tag Archives: Personal finance

A study published this week by the Federal Statistical Office (FSO) shows nearly 1 in 10 (9.9%) people in Switzerland has trouble making their money last until the end of the month. And, 4.9% had to go without goods, services or social activities due to a lack of money. The study is a European comparison of life satisfaction and draws on data from 2022. Photo by Andrea Piacquadio on Pexels.comDespite the financial challenges faced by some, Switzerland had the highest average life...

Alliance Swisspass, an organisation that stitches together Switzerland’s various public transport providers to create tickets and passes that work across the network, announced this week that there would be no ticket price increases in 2025, reported SRF. © Woj231 | Dreamstime.comA recent rise in the number of people using the network is bringing in more revenue. This is helping to reduce the need to raise prices, said the organisation. In addition, Alliance Swisspass said that the sector...

On 3 March 2024, a majority of Swiss voters accepted a plan to increase the state pension by 1/12th (8.3%) – an extra 13th month of pension will be paid from 2026. Organisers of the vote claimed pension finances were in good shape, implying there was money to fund it. However, there wasn’t. This week the Federal Council presented a plan to raise taxes to pay for the increase, reported RTS. Photo by Andrea Piacquadio on Pexels.comSwiss state pension funding currently looks fine. There are...

When we pay electricity bills we also have to pay for the infrastructure that brings it to our homes. Part of this infrastructure is run by Swissgrid. On 20 March 2024, Swissgrid announced a cut in what it charges from 2025. Photo by Pok Rie on Pexels.comIn 2025, a household with an annual consumption of 4,500 kWh will pay an average of CHF 77 (-16%) for the services provided by Swissgrid instead of the CHF 92 it will pay in 2024. These charges corresponds to 5% of the total bill. So a...

On 21 March 2024, the Swiss National Bank (SNB) lowered its key interest rate from 1.75% to 1.5%. © J0hnb0y | Dreamstime.comThe move makes the SNB the first significant central bank to lower rates as inflation slows. The cut surprised many analysts and economists. The consensus expectation was for no change in the rate. Many other central banks have left rates unchanged. On 20 March 2024, the US Fed decided to maintain the target range for the federal funds rate at 5.25% to 5.5%. And...

A survey published this week by the organisation Pro Familia shows that 52% of families across Switzerland are struggling to make ends meet. Photo by Vika Glitter on Pexels.comFor many families in Switzerland, money is tight or insufficient to cover all living expenses. The percentage finding themselves in this position rose from 47% to 52%. The rising cost of health insurance was the biggest challenge cited by most of those surveyed. Regarding saving, 30% said they were unable to save...

Since the beginning of March, Swiss health insurance companies have been covering the cost of Wegovy, a weight loss product, reported SRF. © Oleschwander | Dreamstime.comPreviously, Ozempic, a drug also used by diabetics, was being prescribed for weight loss. Going forward, it is expected that the drugs Wegovy and Saxenda will be prescribed for weight loss instead of Ozempic. This should relieve drug shortages for diabetics – people seeking Ozempic for weight loss have made it difficult...

This week, Switzerland’s parliament voted to eliminate child support payments paid to pensioners, reported SRF. Photo by RDNE Stock project on Pexels.comIn Switzerland, parents typically receive payments for every child that is at school or in higher education up to a maximum age of 25. For most, the payments are connected with employment and funded out of the social security taxes deducted from salaries. However, if someone becomes a parent in their 40s they could end up a pensioner...

Individuals can opt out of church tax in most cantons. But companies rarely can, despite many having no connection with a church or a religion. The topic has been a hot political subject for a long time in Switzerland and came back under the spotlight this week when the canton of Bern discussed making it optional, reported SRF. © Nuvisage | Dreamstime.comIn 2021, the canton of Bern collected CHF 37 million in church tax from companies, so a change in rules would be felt. A key...

After two increases in a row the reference interest rate used for adjusting rents remains unchanged this quarter. Photo by Expect Best on Pexels.comAfter two rises from 1.25% to 1.75% last year, many tenants in Switzerland will be breathing a sigh of relief. Many economists forecast no increases in the rate this year. Every quarter the rate of interest used to set the rents in Switzerland is reviewed. If it goes down some renters have the right to request a decrease in rent. If it...