What is it that makes the Swiss annuitise? A description of the Swiss retirement system

Abstract

The Swiss model of retirement savings and benefits distinguishes itself in several aspects. The system is successful in encouraging substantial savings, which are exonerated from tax and guaranteed. The associated market risk is not transferred to the individuals. From an international perspective it is extraordinary that more than half of the Swiss who retire choose to annuitise their capital at retirement. In addition, not only does the retirement scheme offer annuity benefits at retirement, but it also offers annuity benefits on disability and death. In this paper we describe the Swiss social security system with an emphasis on retirement benefits, giving some insights as to what in Switz..