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Policies for Switzerland’s ageing society

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  • Christine Lewis
  • Patrice Ollivaud

Abstract

Swiss society is ageing. At the same time, life expectancy is increasing. With most workers retiring around age 65, time in retirement is growing and the ratio of retirees to employees is set to soar. These developments bring a range of opportunities but will likely weigh on growth in GDP per capita and increase public spending. They may also widen existing inequalities. This paper highlights three key policy challenges to preserve high living standards in coming decades. First, the pension system ensures good retirement incomes despite a lack of reforms. However, reforms are urgently needed as the system is under increasing pressure. Second, a range of disincentives and barriers in the labour market and tax system contribute to early retirement and involuntary retirement. Boosting employability at older ages and broadening older workers’ options would dampen the economic impact of ageing. Third, the Swiss health system delivers good outcomes but at a higher cost than other countries, and ageing will only exacerbate the associated pressures. Cost containment and improved co-ordination are vital. Adjusting the financing of long-term care could improve access and the overall quality of long-term care.

Suggested Citation

  • Christine Lewis & Patrice Ollivaud, 2020. "Policies for Switzerland’s ageing society," OECD Economics Department Working Papers 1600, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1600-en
    DOI: 10.1787/3f8a12c6-en
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    More about this item

    Keywords

    healthcare; labour market; long-term care; long-term projections; pension system; population ageing; Switzerland;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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