At the time of retirement a disaster of gigantic extent in Switzerland. Is caused by to high pensions in relation to life expectancy. On the other hand, the pension Fund assets are eating through negative interest rates. While for the Former, finally, a pension reform, are at the Second extraordinary measures necessary.
There is a redistribution from the savers to the debtors.
Switzerland is launched in 2019, the fifth year with negative interest rates. This means that if the banks Deposit money at the Bank, you have to pay 0.75 per cent interest, instead of that you can get a rate of interest, as in the capitalist System. This level of interest rates affects the whole economy. Savers receive very little interest, if you put your money in the Bank, the Federal government receives 0.2 percent interest, when he is heavily in debt. Overall, a huge redistribution from the savers to the debtors.
The biggest savers in the country, the pension funds, which manage our retirement assets. Their business model is not built to the fact that they Finance the pensions only with contributions but also with the income from the assets. In Essence, the pension funds put their money into three categories: real estate, stocks and bonds. Because of the low interest rate policy, investment in bonds cease to be practical.
The bill is quickly made: If you invest in a Inflation of just under one per cent in papers, which have practically no interest, or in which you have to pay at all to it, money is destroyed. You invested in real estate, then this leads to the bladder to be an even greater price, than there are today. The pension funds invest more in shares happening in the stock market the same.
The assets of the Swiss pension Fund is, at the Moment, with 800 billion Swiss francs, coincidentally, almost the same size as the total assets of the national Bank. The has ballooned its balance sheet in recent years to 700 billion, in order to keep the Swiss franc low, and to support the economy, particularly the export industry and tourism. It is not likely to change. Because in southern Europe, especially in Italy, still in crisis. The interest rates in the Euro area remain low, can not lift the SNB over the years, the interest rates, because the Swiss franc is rising massively. Therefore, it is expected that the pension funds bleed still.
If nothing happens, then the policy of the national Bank destroyed, in the longer term the pension plan. Therefore, it is quite appropriate, when the policy think about it, not to pump annually 2 billion into the pension system, if you hesitate before to support the industry with 700 billion. At least as long as the negative interest are retained. Extraordinary times call for extraordinary measures. (Editorial Tamedia)
Created: 03.02.2019, 13:51 PM