Intergenerational Transfers and the Stability of the Swiss Retirement System
Journal
Geneva Papers on Risk and Insurance: Issues and Practice
ISSN
1018-5895
ISSN-Digital
2311-0112
Type
journal article
Date Issued
2013-10
Author(s)
Abstract
We analyse intended and unintended solidarity transfers between the young and the old in the Swiss retirement system. In addition to the intended solidarity transfers in the pay-as-you-go system, we identify a systematic unintended solidarity transfer from the active population to new retirees in the occupational pension system, which occurs due to the statutory conversion rates not being actuarially fair. After providing an overview of intergenerational transfers in Switzerland, we briefly review the Swiss retirement system. Then, we quantify the unintended transfer in the occupational pension system and finish by discussing several policy measures that could be implemented to avoid this intergenerational transfer. The unintended solidarity transfer casts some doubt on the financial stability and social acceptability of the Swiss retirement system, which is often considered one of the best in the world. As such, the problems of and recommendations for the Swiss system are of interest to other pension systems as well.
Language
English
Keywords
intergenerational risk sharing
Switzerland
retirement
occupation pension provisions
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Palgrave Macmillan Ltd.
Publisher place
Hampshire UK
Volume
38
Number
4
Start page
701
End page
728
Pages
28
Subject(s)
Division(s)
Eprints ID
231038
File(s)![Thumbnail Image]()
open.access
Name
Intergenerational Transfers and the Stability of the Swiss Retirement System.pdf
Size
294.79 KB
Format
Adobe PDF
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