Policies for Switzerland’s ageing society

Christine Lewis and Patrice Ollivaud

No 1600, OECD Economics Department Working Papers from OECD Publishing

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.

Keywords: healthcare; labour market; long-term care; long-term projections; pension system; population ageing; Switzerland (search for similar items in EconPapers)
JEL-codes: I18 J11 J26 (search for similar items in EconPapers)
Date: 2020-02-10
New Economics Papers: this item is included in nep-age and nep-lab
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