Pension system challenges emerge in Switzerland and Germany

A study by the Luzern University of Applied Sciences warns that longer life expectancy is creating sizable financing gaps for Swiss retirees. While life expectancy has risen to an average of 23 more years for women and 20 for men since 1948, the gap between pension income and expenses can increase by up to 80 % for those living to 100, especially when health‑care and long‑term‑care costs are added. The authors advise earlier wealth building and explicit budgeting for health‑related expenses.

In Germany, a Bertelsmann Stiftung analysis of the “Rente mit 63” early‑retirement option – taken by roughly 28‑30 % of new retirees and up to 280 000 people a year – estimates that abolishing the option could save billions in pension payouts. The model for the 1957 birth‑year cohort shows that healthier workers would likely extend their careers, while those with limited health would face reduced benefits. Additionally, the German social‑security system provides a basic‑security allowance of €449 per month for individuals who have never contributed to the pension scheme, ensuring a minimal safety net.

Both countries face demographic pressures that require adjustments to pension financing and policy.