Tag Archives: Personal finance

In a recent poll, nearly 82% completely (46%) or somewhat (36%) agreed that the gap between rich and poor in Switzerland is increasing. However, these responses are at odds with typical measures of inequality. © Nora Tarvus | Dreamstime.comTwo key measures of inequality are the S80/S20 and the Gini Coefficient. On both measures Switzerland is fairly stable. The S80/S20 takes the average income of the top 20% and divides it by the average income of the bottom 20%. In Switzerland in 2021...

In 2022, 2.9% of the population received welfare, according to data published by the Federal Statistical Office (FSO) this week. Since 2005, when nationwide data on welfare was first collected, the rate has only dipped below 3% once before in 2008. The highest it has been was 3.3% in 2016 and 2017. © ochu2008 | Dreamstime.comWelfare does not include basic unemployment benefits, state pension payments or standard disability payments, which are Switzerland’s largest social transfers....

On 14 December 2023, the Swiss National Bank (SNB) said it was ending its interest rate tightening cycle after a clear slowdown in inflation. © David Taljat | Dreamstime.comWith inflation rising more slowly than the central bank’s 2% ceiling (it was 1.4% in November 2023), the SNB left its key interest rate at 1.75% for a second consecutive meeting. While the SNB is still willing to intervene in currency markets by buying and selling Swiss francs, Jordan said that can go in both...

With all of the price hikes in Switzerland it is difficult to believe inflation is running at around 2% (it was 1.4% in November 2023). Health insurance premiums in 2024 are on average 8.7% higher than they were in 2023. Now Swiss car insurance is set to get more costly. The insurance advisor VZ predicts an average rise of 15% for vehicle insurance in 2024, reported RTS. Photo by Andrea Piacquadio on Pexels.comThe average expected rise is 15%. However, some premiums may rise by as much...

The previously announced half price plus rail pass, which has some of the features of an annual pass, will be available from mid-December 2023, reported Swiss Rail this week. © Tea | Dreamstime.comThe pass comes in three flavours: Half-Fare travelcard PLUS 1000, Half-Fare travelcard PLUS 2000 and Half-Fare travelcard PLUS 3000. They all work the same. You essentially buy a certain amount of ticket credit at a discount. So for example, someone under 25 would get CHF 1,000 credit at a price...

After rising in October 2023, Swiss inflation dipped in November by 0.2 percentage points to bring annual inflation to 1.4%, reported Switzerland’s Federal Statistical Office (FSO) this week. Photo by cottonbro studio on Pexels.comNovember’s fall brings the rate 0.6 percentage points below the Swiss National Bank’s (SNB) preferred maximum of 2% – the SNB equates price stability with a rise in the Swiss consumer price index (CPI) of less than 2% per annum. The last time Swiss inflation...

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...