English 
Français PENSION - SWISS PEOPLE WILL HAVE TO 'TIGHTEN THEIR BELTS'
Due to the decline in pensions since 2012, workers earning less than 84,000 francs a year will struggle to make ends meet once they retire.
We’ve known this for a long time… Spending one’s retirement in Switzerland will no longer be possible for over 60% of Swiss pensioners!!
Now this fact can no longer be concealed, as it was for so many years; this is a good thing for the population, as we can hope that they will wake up and finally start taking control of their pensions.
Fortunately, the Council of States has blocked the Federal Council’s attempt to strip savers of their second pillar, and it can now be withdrawn in full
It is high time to invest wisely in high-yield products that will allow us to live comfortably, in the sun, in countries offering a gentle and comfortable quality of life.
Because if I have to choose between scraping by on social security in the cold and pollution, dying in poverty, and living a wonderful life in the sun, in the warmth all year round, surrounded by nature, and leaving an inheritance for my heirs...
I’ve made my choice! What about you?
by Alain Farrugia
Retirees may have to continue working once they retire.
Despite economic growth and rising wages, pension fund benefits have been falling for several years. A capital sum of 100,000 francs yielded an annual pension of 7,200 francs in the year 2000, a figure that has fallen to 5,870 francs today, according to the Swiss Trade Union Federation (SGB) and Travail.Suisse.
The SGB and Travail.Suisse, the independent umbrella organisation for workers, have analysed the situation of the second pillar in Switzerland. “The situation has deteriorated significantly” since 2012, emphasised Paul Rechsteiner, president of the SGB, at a press conference on Monday, and the outlook for the future “is even worse”.
Five years ago, an income of 80,000 francs provided 80% coverage through AHV and BVG pensions. “Last year, this fell to 71%,” he warned, whereas pensions are intended to “maintain the previous standard of living in an appropriate manner”, according to the constitutional mandate.
Two-thirds of Swiss people affected
The current situation no longer allows for this; those earning less than 84,000 francs a year must “tighten their belts for their old age”, according to Mr Rechsteiner, which represents two-thirds of the Swiss population. And for part-time jobs, “the lack of coverage (...) is particularly worrying”, which penalises women in particular, 60% of whom work part-time.
To explain this decline, the trade unions point to a performance issue with the second pillar, despite an average return of 5% over the last five years from pension funds. The Swiss Employers’ Association, for its part, highlights the effectiveness of the LPP, which is an “exemplary” system, according to a statement from the organisation.
Insured people “fleeced”
Travail.Suisse and the USS are also calling for a halt to the flow of money from the second pillar to life insurers offering pension fund solutions. The latter are “not efficient enough” and they “fleece policyholders with an unjustified distribution of income (...) and excessive costs”, the two associations claim.
The social partners are analysing the benefits of the second pillar at the request of President Alain Berset. Following the failure of the pension reform in last September’s vote, the Federal Council is planning two separate proposals on the AVS and occupational pension provision for the new reform.
At the beginning of April, the USS and Travail.Suisse, together with the Swiss Union of Crafts and Small Businesses (USAM) and the Swiss Employers’ Association, set to work to find solutions. Joint discussions are due to begin in June and an interim report will be submitted to Mr Berset’s department as early as spring 2019.
