Alternative contribution model

18th July 2018

Erika Mesmer, Client Relationship Manager

The fundamental debate about the future of the pension system came to a standstill after the refusal of the Vorsorge 2020 vote. Currently the heterogeneous combination of the tax proposal 17 with the socio-political compensation for the AHV is a small attempt to reduce the worries about the AHV, but pushes urgent and fundamental reforms to the future.

The association “Workfair 50+” has now launched an initiative relative to the occupational pension. The aim of the association is to help unemployed people of over 50 years. Its reflection is that higher charges result in discrimination of older employees. Its aim with the initiative is therefore to have linear contributions throughout the whole length of working life.

This linear approach, of which the implementation would be linked with many hurdles, offers not only advantages for older employees. Younger people would also benefit, as the capital saved in young years would be much more important, which would allow the third contributor more time to contribute.

The future will show if this initiative will come about. It would in any case be desirable that the fundamental debate gets again going in a constructive manner.