Today: Tuesday, 7 July 2020 year

Switzerland’s pensions system: men earn twice as much as women

Switzerland’s pensions system: men earn twice as much as women

Switzerland changes its pension system to make it more friendly to female pensioners. The point is in Switzerland men receive on average twice the amount women do, The Local Switzerland reported on Friday.

Switzerland has its own pension system, which operates on a pay-as-you-earn (PAYE) model. The monthly pensions are not uniform but are instead paid on the basis of the industry the person worked in. In recent years, the government decided to improve the conditions for pensions, taking into account that Swiss men earn twice as much as women.

For many women, who worked more commonly in the hospitality industry, their pension amount will be far less than that of men, who worked in higher-paying jobs.

The other major reason for the discrepancy is women taking time off to care for children, which reduced their earnings and therefore their pension payments.

According to the most recent statistics available (from 2017), the median BV pensions were CHF2301 for men and CHF1221 for women.

Swiss women are among the best off among female retirees, according to the Federal Council that estimates that about 33 percent of women do not receive a pension at all.

Women who don’t receive a pension must survive on supplementary benefits or will be dependent on a partner who is a recipient of a higher-earning pension scheme.

Pension system reforms will get rid of gender inequality in the Swiss benefits system

The retirement age for women in Switzerland is 64 and it’s 65 for men, although both are expected to be set at 65 sometime in 2020 after a public consultation.

Pension system’s reforms would increase pensions by between CHF100 and 200 per month. In addition, they also reduce the compulsory deduction paid by employees currently working. Thus, that move allows them to take home a greater share of their wages.

While the reform attempts are welcome, they have been slammed for not going far enough to address systemic gender inequality in the Swiss benefits system — particularly for those who are already retired.