2023-09-29 10:41:05
The sixth “pension barometer”, published by Raiffeisen, reveals the population’s lack of understanding of how the second pillar system works. Despite the recent reform of the AVS, the Swiss have less and less confidence in the first pillar, while the third pillar is popular.
In Switzerland, knowledge regarding old age provision is lacking. This is the observation of the last barometer of foresight published Thursday by Raiffeisen. The population is therefore not sufficiently aware of the issues related to retirement financing.
It is true that the Swiss three-pillar system is complicated. Particularly that of the second pillar, since it fluctuates depending on the retirement fund chosen by the employer. Employees do not have any real control over their future pension. Rarely do they know that their assets can fluctuate depending on the investments made by their funds.
The popularity of the third pillar
Surprisingly, the third pillar, the only one which is not obligatory, is the best known by the population, said Friday in La Matinale Graziano Lusenti, investment advisor for institutional investors and specialist in pension funds. “Since it is not obligatory, it is a personal decision, so you have to make the effort to see what foundations are available,” while the first and second pillars are directly supported by the employer, at least for employees, he explains.
However, the third pillar is not accessible to everyone. According to a study by l’institut VZ, around 60% of the population has such an account, mainly in the form of interest-bearing savings. But the proportion of people who opt to invest this savings is increasing, a sign of a decline in confidence in the first two pillars.
Better information on how it works
Despite everything, the first two pillars weigh the most in terms of contributions, since they are supposed to form the largest part of retirees’ pensions. According to Graziano Lusenti, there should therefore be “more emphasis in terms of information and understanding”.
Another observation made by the pension barometer is that the reference age for retirement is fading. There are more and more people retiring early, but also more people postponing their retirement age. “About fifteen years ago, we still talked a lot about the fateful year of turning 65, we had no choice, it was a dead end, which is no longer the case today,” rejoices the expert.
“Retirement, between 62 and 70 years old, therefore bears fruit, there is more and more flexibility, we see a postponement of the retirement age”, yet part of this extension of professional life is also linked to economic and financial reasons, admits Graziano Lusenti.
Radio subject: Sylvie Belzer
Adaptation web: Miroslav Mares
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