Tag Archives: Personal finance

This week, a survey was published setting out issues of greatest concern to the Swiss public. Photo by Towfiqu barbhuiya on Pexels.comThe five biggest issues cited by the Swiss population are of a monetary nature. Economic concerns haverisen, leaving issues such as climate change in sixth place. The top concern is healthcare costs and health insurance premiums. 41.8% were worried about this. This is the leading concern across all age groups, including those under 30 who are typically...

Swiss state pensions have been in the news a lot recently. VAT increased on 1 January 2024 to help fund them, and two referenda on the subject are set for voting on 3 March 2024. This week, RTS published an article setting out the mathematical reality of Switzerland’s pension finances. © Toa555 | Dreamstime.comPensions in Switzerland, like in much of the developed world, face two significant head winds. The biggest of these is demographic shift. The ratio of people paying into the system...

Purchasing power has been hit much less in Switzerland than in other European nations. Between 2020 and 2023 food prices went up 6% in Switzerland. The same figure in Germany (+17%), UK (+40%) and Estonia (+43%) is much higher. Photo by Pixabay on Pexels.comAt the same time, big ticket items like health insurance and rent have made a big dent in Swiss budgets. These more visible prices rises have created a perception that overall costs have risen more than they actually have. This...

Rents have risen significantly in Switzerland, something potentially affecting the 61% of the population living in rented accommodation. A survey by Deloitte places rent control at the bottom of a list of solutions. Photo by ILOVESwitzerland on Pexels.comThe survey, which questioned 1,900 people across Switzerland, found rent controls to be the least preferred solution to dealing with rising rents – only 4% of those with an opinion chose this option. Cities such as Berlin have introduced...

Like many governments, Switzerland’s federal government is spending more than it collects in taxes and other revenues. However, a constitutional mechanism known as the debt brake limits how much the government can overspend. This means, in the absence of significant economic growth or higher tax rates, the government must cut spending. This week it outlined cuts that would shave off CHF 2 billion of spending, reported RTS. Bern © Marekusz | Dreamstime.comThe debt brake is designed to...

Changes to Swiss law on renting recently passed by parliament have met with public resistance. This week, enough signatures were collected to trigger a vote aimed at overturning the work of parliament on rental law reform, according to RTS. Apartment Switzerland © mikechapazzo | Dreamstime.comThe two changes, which would make it easier for landlords to move into their own properties and require written approval to sublet, are viewed by some as a cynical move to weaken the hand of tenants....

This week, the referendum roster was announced for 3 March 2023. There will two votes on Switzerland’s state pension system. One aims to tackle the impending funding crisis by extending the retirement age, and the other aims to alleviate old age poverty by increasing payments without a plan to pay for it. Photo by Monica Silvestre on Pexels.comThe first would raise the retirement age by one year to 66 by 2032 and then link it to life expectancy beyond that date. If life expectancy rises...

This week, SRF held a discussion on poverty in Switzerland. Philipp Frei, Managing Director of the Swiss Budget Consulting Association, an organisation that helps people budget, voiced concern over shrinking disposable incomes. While economic historian Tobias Straumann spoke of the progress Switzerland has made on welfare and poverty’s often transient nature. Photo by Ahsanjaya on Pexels.comIn 2021, Switzerland’s poverty line was set at CHF 3,989 (US$ 4,650) a month for a family of four...

In Switzerland, the law allowed health insurance companies to pursue young people for unpaid insurance premiums when they turned 18. From 1 January 2024, this is no longer possible. These debts remain with the parents. If insurers want to collect the money they are owed they will now have to pursue parents. Photo by Mikhail Nilov on Pexels.comHowever, the law is not retroactive. This means it will only apply to young people turning 18 after 31 December 2023. The change has long had the...

On 1 January 2024, three new laws came into force. The first is a change to Swiss pensions. Under the new rules it will be easier to retire later or to continue working part time. Working for longer will mean a larger state pension when it is taken. The economic rationale is that more people working for longer will add to GDP and tax revenue, reduce the dependency ratio and help with the challenges of funding pensions as the population ages. © Chris Dorney | Dreamstime.comThe second...