Swiss Re study highlights shift toward individual responsibility in retirement planning

A new Sigma study by reinsurer Swiss Re indicates a global shift toward increased individual responsibility in retirement planning. The study notes that individuals are increasingly making complex financial decisions regarding retirement income, wealth transfer, and long-term care financing.

In countries such as the United States, United Kingdom, and Australia, pension systems offer significant flexibility. For example, in the U.S., over half of retirees chose to withdraw and manage their pension capital in 2018, compared to just 10 percent in 2000. In the UK, 36 percent of retirees opted for capital withdrawals rather than lifelong income in 2024.

The Swiss pension system is classified as a hybrid model, combining statutory pension entitlements with capital-funded occupational or private savings, similar to systems in the Netherlands, Japan, and South Korea. The study identifies a potential “advice gap” in Switzerland, as an increasing number of people opt for lump-sum occupational benefits without sufficient financial guidance to navigate these complex decisions.