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UBS sees black for Swiss Pension funds

The state of health of the Swiss pension system has deteriorated in the second and third quarter of the current year, rapidly. The provision works by power, according to the Bank UBS to create, especially the aging of the population. Sustainable reforms for a generation solution was more urgent than ever.

The UBS-pension index, which measures the health of the pension system, had fallen in the third quarter since the start of the measurements in the year 2005 up to the present lowest level, said UBS on Tuesday. Even though already in the year 2017, a deterioration, have won this in the last few months. The pulse beat of the Three-pillar-system is as weak as last, after the turmoil of the global financial crisis.

increased life expectancy

Of the four subcomponents, which are considered in the pension index, is currently the biggest negative influence of the demographic. A rising life expectancy and the comparatively smaller number of children led to the ageing of the population and the proportion of over-65-Year-old in the next few years will increase, warn, UBS Economists. The imbalance between Young and Old grows.

in Contrast, the economic situation in Switzerland, with UBS-expected economic growth of 2.6 percent in the current year, a light view for the provision of the works. However, this support is crumbling. Since the various components of the sub-index had already climbed for several quarters, peak values, taking the momentum. In addition, the stronger Swiss franc have impacted the competitiveness of Switzerland easily.

Weak finances

Overall, the financial situation of the pension system remains weak, largely due to the dwindling sustainability of the AHV. Since the expenditure could not be covered by the revenue, but also in the 2. Column, the investment income contributing a significant part to Finance, the UBS. The Problem here is that The in the financial markets, returns are likely to are not as high as in 2017, as the environment is likely to be demanding and volatile.

Sustainable reforms in the pension system are needed, the Economists concluded. And to find a generation solution, whether you're in a hurry. Because as soon as the birth was a strong baby Boomer Generation the retirement age will burden the renovation, the relatively smaller economically active group even stronger. The policy is in the template "AHV 21" put forward solution proposals, the Economists make a good witness. The template will not bring a sustainable solution and it has already tough discussion of reform measures is likely to continue. (fal/sda)

Created: 18.12.2018, 11:35 PM

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