Switzerland struggles to reform pensions as its neighbors move ahead

Switzerland is finding pension reform difficult while several neighboring countries have already raised the retirement age. The issue was discussed at the Pension Forum organized by Le Temps at the IMD institute in Lausanne.

Population aging is not unique to Switzerland. Across developed countries, governments face the challenge of financing retirement systems as demographic pressures grow. Séverine Arnold, a professor of actuarial science at HEC Lausanne, reviewed the main approaches adopted abroad.

One of the clearest responses has been to keep people in work longer. Many European countries have raised the statutory retirement age beyond 65. Germany has moved to 67 and is considering another increase. Belgium has set the age at 66 and plans to raise it to 67 in the near future.

Denmark plans to increase its retirement age to 68 in 2030 and 70 in 2040. France stands out as an exception after temporarily suspending its planned increase to 64.

In Switzerland, changing pensions remains politically explosive. The comparison with other European systems highlights the choices facing the country as it considers how to keep retirement financing viable.