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PENSIONS

OPINION: Switzerland can no longer justify a lower retirement age for women

Having a lower retirement age for women is a throwback to more patronising times, yet the Swiss government has struggled to introduce parity in this area for decades. As the latest reform attempt comes to a popular vote, Clare O’Dea asks what’s behind female resistance to this change.

OPINION: Switzerland can no longer justify a lower retirement age for women
Swiss pensionista have been hit by rising inflation. (Photo by VALERY HACHE / AFP)

The retirement age in Switzerland is 64 for women and 65 for men. For generations of Swiss people, this differential treatment is standard. The gap used to be bigger. From 1962 to 1997, women retired at 62.
On September 25, Swiss voters will have their say on a reform of the state pension system (AHV / AVS), which would raise the retirement age for women to 65 and use a VAT hike to help finance pensions. The Old Age and Survivors’ Insurance has been running a deficit since 2014 and this reform is billed as a crucial package to keep it viable.

Is earlier retirement for women a historical benefit worth defending or should it be abandoned in the interests of fairness and financial good sense? If women voters alone could decide, the proposal would be rejected.

READ ALSO: Reader question: How long must I work in Switzerland to qualify for a pension?

According to the most recent poll, 64 per cent of women intend to vote against the reform, while 71 of male voters approve of the law. This is a much higher gender difference than is usually seen, even in sex-specific voting issues. These numbers, if sustained, would ultimately deliver a yes vote but leave a bitter taste for women.

As a woman who will be directly affected by this decision in the not-too-distant future – well, 15 years from now – and someone who made all the classic gender-based “mistakes” when it comes to my own pension provision, I don’t see this potential change as a threat. If anything, it is an opportunity, a wake-up call.
Swiss women earn less than men over their lifetimes for several well-documented yet seemingly unshakable reasons. Mostly these relate directly or indirectly to time spent caring for children or other family members.

Caring responsibilities, even the hypothetical possibility of such responsibilities, influence women’s career choices, the number of hours they work, and their income. This burden also influences how women are perceived and rewarded as employees.

READ ALSO: EXPLAINED: How does the Swiss pension system work – and how much will I receive?

But there is also a kind of fatalism on the part of women in long-term partnerships who know they can’t sustain a career as the “main earner” without a “wife-like” partner to rely on, so they do not try. Divorced women usually find it’s too late to catch up.

Three things that are bad for pension provision are career interruptions, part-time hours and lower pay. Yet this is the norm for most working women over the long term, mothers in particular.

As I see it, there are three ways to improve matters. Either women change to behave more like male workers, the system changes to accommodate existing patterns better, or we change the existing family patterns altogether.

(Photo by ROMAIN LAFABREGUE / AFP)

The problem is that mother workers can only become more like father workers when men pick up the slack (choosing family-friendly jobs, reducing their hours, taking family-centred career breaks, leaning in at home). Where else will the spare capacity come from?

READ ALSO: EXPLAINED: Everything you need to know about retiring in Switzerland

I think all three changes need to happen in parallel. Some progress has already been made. There is no point in hanging around with the retirement age reform. It’s one of the few changes that can be achieved with the stroke of a pen.

Those campaigning against harmonising the retirement age say that all the other things dragging down women’s lifetime earnings – the structure of the labour market, lack of affordable childcare, gender pay gap, the persistence of traditional gender roles – need to be fixed first before we demand an extra year of work from women. That seems defeatist and totally impractical to me.

The priority for all is to avoid women having a much greater risk of poverty in old age as they do now, especially divorced women and widows.

Swiss women currently receive 37 percent less than men through all three types of pension provision combined – the state pension, occupational schemes and private pension. The picture in Switzerland is worse than in most industrialised countries because of the prevalence of part-time work for women – a double-edged sword.

Swiss voters turned down two previous proposals to level up the retirement age for women – in 2004 and 2017. However, taking into account the compensatory measures included in the current reform, that potential extra working year should not be viewed as a penalty.

READ ALSO: Reader question: Can I take my pension money with me when I leave Switzerland?

If that year is spent working, not only will the women have their salary, but they will also have the opportunity to contribute a bit more to the two other streams of pension funding – occupational pensions and voluntary private pensions.

Working also means being physically active, having more social interactions and stimulating your brain. These are all pillars of brain health that help protect against the onset of dementia, a disease that women are twice as likely to suffer from.

The absolute refusal to acknowledge that an ageing population and increasing life expectancy require changes to long-standing pension norms is one of the blind spots of the Left in Switzerland. According to the UBS International Pension Gap Index, the proportion of active (working) to retired people will decrease from the current level of 3 to 1 down to 2 to 1 by 2050.

The reasons why Swiss women should retire one year earlier than men are lost of the mists of time. Well, not quite, there was some talk of “physiological disadvantage” and wives keeping their older retired husbands company. It seems rather silly now.

The final justification left for an early exit from the workforce is that it offers some compensation for all the other financial injustices. That’s a passive rather than an active approach to our problems. I see this reform as part of the solution. Let’s get on with it.

Member comments

  1. I totally disagree. Women in Switzerland are still at a great disadvantage. There is no support for childcare, for instance. So women in Switzerland have traditionally worked 80% jobs so they could be home when their children are home from school. Men in Switzerland are not known for helping with household chores, shopping, or cooking. Indeed, a more macho place is hard to name. So women stil deserve a break on retirement age. If you notice, whenever Switzerland does something in the name of parity, it is always to the disadvantage of females.

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LIVING IN SWITZERLAND

REVEALED: Are these the ‘best’ places to live in Switzerland?

German-speaking cities dominate the list in a new quality of life in Switzerland study - here are the best places to live in the Alpine country.

REVEALED: Are these the 'best' places to live in Switzerland?

Zurich, Geneva, Basel are all beautiful cities with plenty of offers for their residents, but which would top the list of the best place to live in Switzerland? Turn out, none of them.

A new quality of life study commissioned by the daily newspaper Handelszeitung looked into several criteria to determine the best places in the country. The Gemeinderatings 2022 evaluated 944 municipalities with more than 2,000 inhabitants to make the ranking.

READ ALSO: Health, prices, and safety: Is Switzerland a good country to retire in?

Among the criteria to determine how attractive each area is, they looked into taxation issues, how safe the cities are, how many jobs are available, the quality of the real estate market (both when buying and renting properties) and the level of support for elderly residents.

Additionally, Handelszeitung looked into matters such as the availability of leisure offers, access to public transportation, and sustainability factors as well.

These are the top ten places to live in Switzerland:

  1. Cham, Canton Zug
  2. Zug, Canton Zug
  3. Risch, Canton Zug
  4. Altendorf, Canton Schwyz
  5. Walchwil, Canton Zug
  6. Meggen, Canton Lucerne
  7. Meilen, Canton Zurich
  8. Hergiswil, Canton Nidwalden
  9. Hünenberg, Canton Zug
  10. Baar, Canton Zug

German-speaking Switzerland dominates the list

The best city, Cham, did exceptionally well in the criteria of taxes (reaching the fifth spot) and real estate (11th in the ranking for this criteria). The neighbouring city of Zug secured second place, followed by Risch, all in the same canton.

Switzerland’s French or Italian-speaking areas have certainly not fared well, and all the country’s top ten cities are in German-speaking cantons. Moreover, Canton Zug gets an impressive number of six towns (and the top 3) in the best 10.

READ ALSO: MAP: The best cantons for business in Switzerland

The first French-speaking city in Switzerland to show up in the ranking comes only in 63rd place: Pregny-Chambésy, in the canton of Geneva. Then, Saint-Sulpice (VD) follows in 69th place, Carouge (GE) in 73rd, and Lutry (VD) in 95th).

Italian-speaking Switzerland does even worse: it only appears in 90th place with Collina d’Oro.

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