For many people, providing for the future is already about far more than just saving for their pension. There is a great desire for selfdetermination, flexibility and individual ways of living. However,the Swiss pension system continues to focus heavily on the traditional model of retirement provision. An exclusive study by the Sotomo research institute commissioned by PensExpert shows how strongly people’s realities already deviate from the logic of this system.
The representative survey reveals a varied picture when it comes to people’s understanding of providing for the future.
In more than 70 per cent of respondents,associations with the concept encom passed not just financial security in retirement but also possibilities for ensuring security in future phases of life. These include periods of continuing education,parental leave and parental care, early retirement and sabbaticals. This differ entiated perspective was observed in all age groups, with young people in particular expressing a desire for flexible solutions. The classic tripartite division of life into education, work and retirement is outdated. More and more people want to take breaks during their working lives, return to education or look after family members on a temporary basis. The current pension system offers hardly any opportunities for this. New solutions are required.
THE TIME VALUE ACCOUNT: A SOLUTION FROM GERMANY
One concept enjoyed particularly broad support among survey participants:
the time value account. The idea behind it is simple: employees can deposit portions of their salary, overtime or un
used holiday allowances in a time value account. The balance accumulated in this way can then be used to finance a period of leave at a later date. The model is already established in Germany. In Switzerland, by contrast,it is still virtually unknown. Only around a quarter of those surveyed had even heard of it before the study. After a brief explanation, however, some 76 per cent of respondents rated the concept as fairly or very positive. Support was particularly prevalent among 18 to 35 year olds.
“Today, f inancial provision needs to offer more than just security in old age – it has to accompany us in every phase of our lives.
Michael Hermann is one of the leading pollsters and political analysts in Switzerland. With his re search institute Sotomo,he analyses the Swiss political landscape and studies changes in the Swiss population’s attitudes.
VARIED ASPIRATIONS –FROM SABBATICALS TO PARENTAL LEAVE
“The findings are clear: a modern pension system must take increasing individual
isation and people’s different realities into consideration. The time value ac
count offers a pragmatic solution for this that is based on personal responsibility while simultaneously creating social security,” explains Michael Hermann,CEO of Sotomo. At the same time, the study also shows that trust in the pension institutions –especially the second pillar – cannot be taken for granted. Many people view the system as opaque, rigid and inflexible. The desire for change is there, but to date politicians have reacted only hesitantly. It is therefore all the more important that innovative models like the time value account become better known and are incorporated into political discourse.