A new study from the VZ Asset Center has calculated how much someone would need in assets to have a healthy retirement in Switzerland. They found that while many Swiss pensioners underestimate how much they have in the kitty, most need to have a lot of money stashed away for a comfortable life in the alpine nation.

Median pension assets in Switzerland total 1,5 million francs

In the study - which analysed the pension situation of 2.200 households - the VZ calculated that the median couple in Switzerland retires with assets totalling just over 1,5 million francs. They calculated that the majority of assets are found stored away in the Swiss pension system, leading most retirees to underestimate just how much they have in assets. 

The largest chunk, totalling an average of 60 percent of all assets among non-homeowners, is from money accrued through working as part of second-pillar pensions (BVG). This drops to an average of 40 percent with the addition of those who own property in Switzerland.

A majority of Swiss retirees have also invested in third-pillar private pensions. This is a growing trend even among the young: according to the latest Pension Barometer from Raiffeisen, 61 percent of 18 to 30-year-olds in Switzerland have a private pension. The Swiss bank blamed the phenomenon on increasing financial uncertainty around statutory first (AHV / OASI) and second (BVG) pillar pensions.

Swiss pensioners underestimate how much retirement will cost

Securities, savings and private accounts were also popular options among pensioners in Switzerland. In addition, 86 percent of retirees examined owned their own homes. This means that once mortgages are deducted and savings are collated, the median retired couple in Switzerland has assets of just over 1,5 million francs.

Though this sounds like a lot of money, VZ noted that many pensioners underestimate how much retirement will cost. While work-related costs like public transport tickets, clothing and meals decline, they noted that the addition of more free time leads to higher spending on recreation like holidays, treats and days out. The cost of basic and supplemental health insurance also increases dramatically beyond retirement.

How much in savings do I need to retire in Switzerland?

Based on their calculations, to live comfortably couples in Switzerland aged between 65 and 90 need assets of more than 1 million francs to cover the cost of taxes, housing, food and other expenses, in addition to what they earn via their AHV first pillar pension.

Though the data suggests that most pensioners in Switzerland are financially healthy, a 2023 study from the Federal Statistical Office noted that retirees are still some of the most at risk of poverty. In 2021, 15,4 percent of over 65-year-olds were classed as living in poverty, meaning they receive less than 27.468 francs a year as a single person or less than 47.868 francs as a couple.

Nevertheless, more is being done to ease the problem. In March, Swiss citizens approved giving pensioners a 13th month of AHV while rejecting an increase in the retirement age, while in September voters rejected reforms to the BVG that would have reduced payments to some pensioners.

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