Can ‘Old Age Security 2020’ guarantee pensions?

Faced with an aging population, reduced economic growth and low interest rates, the government and a parliamentary majority are calling for a sweeping reform of the old age social security system to ensure that pensions can still be paid for in years to come. Here are the basic elements of the package “Old Age Security 2020”, which will go to a nationwide vote on September 24. It is undoubtedly one of the most important reform projects to be put to a nationwide vote in many years. Especially because it concerns the whole population: almost all residents – Swiss or foreigners, young or old, working or not, rich or poor – have a right to old age security benefits. But also because of the huge amounts of money involved: assets of CHF800 billion ($825 billion) are deposited in employee pension funds alone. The goal of the reform is to guarantee funding for the social programmes – and thus pension incomes – on into the future, despite heavy pressure in the coming decades. The main ...

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