ABOUT A THIRD OF PENSIONERS RECEIVE THEIR AHV PENSIONS ABROAD

An increasing number of former foreign workers and Swiss expatriates are receiving their AHV pensions from outside Switzerland. This now accounts for 32.3% of the total. This is a source of irritation for the PLR and the UDC, who see it as a loss of revenue.

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A third of Swiss pensions are paid abroad, but the proportion of the total amount paid by the AVS outside Switzerland is smaller, at 13.1%, reported Blick on Thursday, citing figures from the Federal Social Insurance Office (FSIO).

These include Swiss expatriates, but mainly foreigners who return to their country of origin after retirement.

Italy tops the list

According to the latest figures from the FSIO, the top recipient country for AVS pensions in 2016 was Italy, with 244,260 pensioners. These are mainly former Italian workers, with the proportion of Swiss nationals (9,499) being very low.

Other popular destinations include Spain, Austria and Portugal.

Number of AHV pensioners living abroad in 2016

Source: Federal Social Insurance Office.

The most popular destinations for Swiss pensioners are France (25,351) and Germany (11,996).

The number of pensioners living in retirement homes in Thailand is also growing, with more than 2,500 in 2015.

Loss of revenue for Switzerland

Faced with the exodus of AVS pensioners abroad, the PLR and the SVP are up in arms: “These pensioners generate no value in Switzerland. They don’t pay taxes and don’t spend money here,” lamented PLR president Petra Gössi in the Blick.

The SVP is singing from the same hymn sheet. Basel-based Thomas de Courten also regrets that more and more pensioners are leaving to “enjoy a comfortable retirement abroad”.

And with the additional 70 francs per pension recommended by the 2020 Pension Reform – the pension reform due to be put to a vote on 24 September – the situation will, in their view, get even worse. The SVP and the PLR, both opposed to this reform, will certainly use this argument in their campaign, which promises to be as heated as the summer.

These statements have not failed to provoke a reaction from the left. On Twitter, Jean Christophe Schwaab (SP/VD) denounced a “pathetic controversy”, which “reveals the right’s intentions in the event of a ‘no’ [to the pension reform]: to attack the universality of the AVS.” His colleague in the National Council, Ada Marra (PS/VD), added: “We are entitled to the AVS unconditionally.”

More pensioners abroad by 2030

Spending one’s retirement abroad is a trend that is set to grow in the coming years. According to Harald Sohns, spokesperson for the Federal Social Insurance Office, speaking in the Blick on Thursday, the proportion of pensions paid abroad will rise to 35% by 2030.

The proportion of the total amount paid by the AVS abroad, currently 13.1%, is also expected to rise to 15% by 2030, the spokesperson predicts, based on demographic projections. 

Feriel Mestiri

Source: RTS