The importance of life expectancy for the financing of AHV and its development in Switzerland

The importance of life expectancy for the financing of AHV and its development in Switzerland

According to a report by www.srf.ch,

Although life expectancy in Switzerland continues to rise, it is no longer as strong as in the past. This could have an impact on pension funding calculations, as the question of how long pensions have to be paid out plays an important role.

Demographic expert Johanna Probst explains that although life expectancy has increased in recent years, it has reached a certain plateau. Medical advances have led to a sharp decline in infant mortality, which previously depressed life expectancy. However, progress in diseases and health behavior in older age groups is still possible, which could further increase life expectancy.

The average life expectancy in Switzerland is 85.5 years for girls and 81.5 years for boys. These numbers are unlikely to increase quickly or significantly in the near future.

The Covid-19 pandemic has shown that unforeseen events such as epidemic waves of disease can influence life expectancy. There is also a high level of uncertainty regarding various developments, such as climate change, which could also have an impact on life expectancy and thus on retirement provision.

This development could have an impact on the financial market as insurance and pension providers have to adjust their calculations and reserves. In addition, longer life expectancy could also lead to higher demand for long-term financial products and investments.

The development of life expectancy is therefore an important factor that must be constantly monitored by financial experts in order to make informed decisions when planning retirement and investment strategies.