Elderly care costs pose financial risks in Germany and Switzerland

Rising costs for long-term care and nursing home residency are creating significant financial pressure for elderly populations in Germany and Switzerland.

In Germany, care insurance benefits for those with the lowest care level (Pflegegrad 1) are projected to see specific adjustments. Following a 4.5 percent increase in 2025, relief amounts and aid for consumables are set to reach 131 euros and 42 euros respectively by 2026. However, the practical application of these benefits remains a challenge; in Neu-Ulm, a 77-year-old pensioner with care level 3 was forced into a homeless shelter after accumulating over 30,000 euros in unpaid nursing home fees, highlighting disputes between social welfare agencies regarding coverage.

In Switzerland, the financial burden of residential care is increasingly outpacing standard pensions. With average monthly costs exceeding 10,000 Swiss francs, a typical stay of approximately 784 days can cost an individual nearly 280,000 francs. Projections suggest monthly costs could rise to between 13,000 and 14,500 francs by 2040, posing a threat to the savings and inheritances of the middle class.