Publication:
Annuities in Switzerland

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dc.contributor.authorBütler, Monika
dc.contributor.authorRuesch, Martin
dc.date.accessioned2012-06-08T19:09:04Z
dc.date.available2012-06-08T19:09:04Z
dc.date.issued2007-12
dc.description.abstractSwitzerland's pension system has attracted considerable attention, mainly due to its reliance on a three-pillar structure. A relatively small pay-as-you-go system (first pillar) is complemented by a mandatory, employer-based, fully funded occupational pension scheme (second pillar). The main goal of this paper is to provide a detailed description and analysis of the Swiss pension system. Particular emphasis is placed on the second pillar and its role in the provision of old age benefits within the Swiss social security system. The paper shows, for example, that a typical individual with an uninterrupted career can expect a net (after-tax) replacement rate of at least 70 percent. Occupational pension plans are highly regulated. Minimum interest rate requirements and minimum conversion rates (at which the accumulated retirement balances are transformed into annuity streams) introduce many elements of defined benefit plans into notionally defined contribution schemes. The resulting money's worth ratios are very high (with the exception of single males). Switzerland also has a high annuitization rate by international standards (approximately 80 percent). However, due to high fragmentation of the scheme and non-uniform accounting practices, some aspects of the system are not very transparent. The paper sheds light on the financial health of the pension system and the evolution of the regulatory framework in the past two decades.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/12/8877327/annuities-switzerland
dc.identifier.doi10.1596/1813-9450-4438
dc.identifier.urihttps://hdl.handle.net/10986/7567
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4438
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectADDITIONAL CONTRIBUTIONS
dc.subjectADDITIONAL INCOME
dc.subjectADDITIONAL PAYMENTS
dc.subjectADDITIONAL PENSION
dc.subjectADMINISTRATIVE COSTS
dc.subjectALTERNATIVE INVESTMENTS
dc.subjectAMOUNT OF MONEY
dc.subjectANNUAL WAGE
dc.subjectASSET ALLOCATION
dc.subjectASSET MANAGEMENT
dc.subjectAVERAGE CONTRIBUTION
dc.subjectAVERAGE PENSION
dc.subjectAVERAGE PENSIONS
dc.subjectAVERAGE WAGE
dc.subjectAVERAGE WAGES
dc.subjectBANK PRODUCTS
dc.subjectBANKS
dc.subjectBENEFICIARIES
dc.subjectBENEFIT PLAN
dc.subjectBENEFIT PLANS
dc.subjectBEQUEST
dc.subjectBOND
dc.subjectBONDS
dc.subjectBUSINESS CYCLE
dc.subjectCALCULATION
dc.subjectCALCULATIONS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCAPITAL STOCK
dc.subjectCASH FLOWS
dc.subjectCHILD CARE
dc.subjectCLAIMANT
dc.subjectCONSOLIDATION PROCESS
dc.subjectCONTRIBUTION
dc.subjectCONTRIBUTION RATE
dc.subjectCONTRIBUTION RATES
dc.subjectCONTRIBUTION SCHEMES
dc.subjectCONTRIBUTIONS
dc.subjectCREDIT BALANCE
dc.subjectCREDIT BALANCES
dc.subjectCREDITS
dc.subjectCURRENT PRICES
dc.subjectCURRENT RATE
dc.subjectDEFINED CONTRIBUTION PENSION
dc.subjectDEGREE OF RISK
dc.subjectDEGREES OF RISK
dc.subjectDEPENDANTS
dc.subjectDIFFERENT INTEREST RATE
dc.subjectDIFFERENT INTEREST RATES
dc.subjectDISABILITIES
dc.subjectDISABILITY
dc.subjectDISABILITY BENEFITS
dc.subjectDISABILITY INSURANCE
dc.subjectDISABILITY PENSION
dc.subjectDISABILITY PENSIONS
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNT RATES
dc.subjectDIVORCE
dc.subjectEARLY RETIREMENT
dc.subjectEARNINGS
dc.subjectEXPENDITURES
dc.subjectFAIR VALUATION
dc.subjectFEMALE WORKERS
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL DIFFICULTIES
dc.subjectFINANCIAL HEALTH
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL POLICY
dc.subjectFINANCIAL SITUATION
dc.subjectFINANCIAL SYSTEMS
dc.subjectFIXED INCOME
dc.subjectFIXED INCOME INVESTMENTS
dc.subjectFREE ASSETS
dc.subjectFUND MANAGERS
dc.subjectGOVERNMENT BOND
dc.subjectGOVERNMENT REVENUES
dc.subjectGROSS INCOME
dc.subjectGUARANTEE FUND
dc.subjectHEALTH INSURANCE
dc.subjectINCOME
dc.subjectINCOME GROUPS
dc.subjectINCOME INCREASE
dc.subjectINCOME LEVELS
dc.subjectINCOME SOURCE
dc.subjectINCOME STREAM
dc.subjectINDIVIDUAL PENSION
dc.subjectINDIVIDUAL RETIREMENT
dc.subjectINFLATION
dc.subjectINSURANCE COMPANY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL STANDARDS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT PORTFOLIO
dc.subjectINVESTMENT REGULATIONS
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLIABILITY
dc.subjectLIABILITY MANAGEMENT
dc.subjectLIFE EXPECTANCY
dc.subjectLIFE INSURANCE
dc.subjectLIFE INSURANCE COMPANIES
dc.subjectLIFETIME
dc.subjectLIVING COSTS
dc.subjectLIVING STANDARD
dc.subjectLONG-TERM PROJECTIONS
dc.subjectLOW COST
dc.subjectLOW INCOME
dc.subjectLOW-INCOME
dc.subjectLOW-INCOME WORKERS
dc.subjectLOWER INTEREST RATE
dc.subjectLOW­INCOME
dc.subjectLUMP SUM
dc.subjectLUMP SUMS
dc.subjectMARGINAL UTILITY OF CONSUMPTION
dc.subjectMARKET CONDITIONS
dc.subjectMARKET DEVELOPMENTS
dc.subjectMARKET INTEREST RATES
dc.subjectMARKET RETURNS
dc.subjectMARKET RISKS
dc.subjectMARKETING
dc.subjectMARRIED COUPLE
dc.subjectMARRIED COUPLES
dc.subjectMARRIED WOMEN
dc.subjectMATURITY
dc.subjectMAXIMUM CONTRIBUTION
dc.subjectMAXIMUM CONTRIBUTION RATES
dc.subjectMINIMUM BENEFIT
dc.subjectMINIMUM BENEFITS
dc.subjectMINIMUM CONTRIBUTION
dc.subjectMINIMUM PENSION
dc.subjectMINIMUM RATE OF RETURN
dc.subjectMONTHLY INCOME
dc.subjectMONTHLY INCOMES
dc.subjectMORTGAGE
dc.subjectMORTGAGE PAYMENTS
dc.subjectNOMINAL YIELD
dc.subjectOCCUPATIONAL PENSION
dc.subjectOCCUPATIONAL PENSION SCHEME
dc.subjectOCCUPATIONAL PENSION SCHEMES
dc.subjectOCCUPATIONAL PENSIONS
dc.subjectOCCUPATIONAL PLANS
dc.subjectOLD-AGE PENSION
dc.subjectOLDER WORKERS
dc.subjectPENSION
dc.subjectPENSION BENEFIT
dc.subjectPENSION BENEFITS
dc.subjectPENSION COMPANIES
dc.subjectPENSION FUND
dc.subjectPENSION FUNDS
dc.subjectPENSION PLAN
dc.subjectPENSION PLANS
dc.subjectPENSION PROVIDER
dc.subjectPENSION PROVIDERS
dc.subjectPENSION REFORMS
dc.subjectPENSION SYSTEM
dc.subjectPENSION SYSTEMS
dc.subjectPENSIONERS
dc.subjectPENSIONS
dc.subjectPOVERTY RATE
dc.subjectPRESENT VALUE
dc.subjectPRIVATE PENSION
dc.subjectPUBLIC PENSION
dc.subjectPUBLIC PENSION SCHEME
dc.subjectREAL ESTATE
dc.subjectRECESSION
dc.subjectREFERENDUM
dc.subjectREGULATORY AUTHORITIES
dc.subjectREGULATORY FRAMEWORK
dc.subjectREPLACEMENT RATE
dc.subjectREPLACEMENT RATES
dc.subjectRESERVES
dc.subjectRESPONSIBILITIES
dc.subjectRETIRED
dc.subjectRETIRED INDIVIDUAL
dc.subjectRETIRED INDIVIDUALS
dc.subjectRETIREMENT
dc.subjectRETIREMENT AGE
dc.subjectRETIREMENT AGES
dc.subjectRETIREMENT ASSETS
dc.subjectRETIREMENT BENEFITS
dc.subjectRETIREMENT DECISION
dc.subjectRETIREMENT DECISIONS
dc.subjectRETIREMENT INCOME
dc.subjectRETIREMENT INCOMES
dc.subjectRETIREMENT PLANS
dc.subjectRETIREMENT PRODUCTS
dc.subjectRETIREMENT PROGRAMS
dc.subjectRETIREMENT SAVINGS
dc.subjectRETURNS
dc.subjectRISK MANAGEMENT
dc.subjectRISK MANAGEMENT STRATEGIES
dc.subjectRISK PREMIUM
dc.subjectSAFETY NET
dc.subjectSALARY
dc.subjectSAVINGS
dc.subjectSAVINGS INSTRUMENTS
dc.subjectSMALL EMPLOYERS
dc.subjectSOCIAL INSURANCE
dc.subjectSOCIAL INSURANCES
dc.subjectSOCIAL SECURITY
dc.subjectSOCIAL SECURITY CONTRIBUTIONS
dc.subjectSUPERVISION OF PENSION FUNDS
dc.subjectTAKE-UP RATE
dc.subjectTAKE-UP RATES
dc.subjectTAX
dc.subjectTAX ADVANTAGE
dc.subjectTAX RATE
dc.subjectTAX TREATMENT
dc.subjectTRANSPARENCY
dc.subjectTRUST FUND
dc.subjectTRUST­FUND
dc.subjectUNEMPLOYMENT
dc.subjectVALUATION
dc.subjectVALUE OF PENSION
dc.subjectWAGE GROWTH
dc.subjectWAGES
dc.subjectWITHDRAWAL
dc.subjectWORK FORCE
dc.subjectWORTH
dc.subjectYIELD CURVES
dc.subjectYOUNGER WORKERS
dc.subjectZERO COUPON
dc.titleAnnuities in Switzerlanden
dspace.entity.typePublication
okr.crosscuttingsolutionareaGender
okr.crossref.titleAnnuities in Switzerland
okr.date.doiregistration2025-04-10T09:26:45.243454Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/12/8877327/annuities-switzerland
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid188441468311378751
okr.identifier.doi10.1596/1813-9450-4438
okr.identifier.externaldocumentum000158349_20071212141747
okr.identifier.internaldocumentum8877327
okr.identifier.reportWPS4438
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/12/12/000158349_20071212141747/Rendered/PDF/wps4438.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countrySwitzerland
okr.topicGender::Gender and Law
okr.topicPensions and Retirement Systems
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicSocial Protections and Labor
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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