Swiss Residents Lack Retirement Planning Knowledge, Leading to Poor Decisions
A recent study from the Haute Ecole de Lucerne reveals a significant gap in financial literacy among Swiss residents regarding retirement planning. The study, which assessed the knowledge of over 1,250 individuals with ten questions, found that only 1% achieved a perfect score, with participants averaging just 45% correct answers.
this lack of understanding is particularly concerning, according to Professor Yvonne Seiler Zimmermann, director of the study, as individuals often overestimate their knowledge and afterward make suboptimal decisions about their future financial security.
Experts emphasize the importance of proactive and early planning. Roxane Ecoffey, a specialist in professional provident (pension) schemes, notes that many peopel delay engaging with retirement planning until a major life event prompts them to consider its impact.
“It is often only on the occasion of a significant event that we make the impact that this can have on our foresight,” Ecoffey stated in a recent interview. She warns that waiting until nearing retirement age makes it challenging to considerably improve oneS financial outlook.Regularly assessing one’s situation throughout their career, she suggests, allows for course correction and avoids a last-minute scramble.
Ecoffey attributes this procrastination partly to life stages where retirement savings take a backseat, such as early career priorities like purchasing a car or traveling. Major life changes like divorce, homeownership, or job loss frequently enough serve as the catalyst for finally addressing retirement planning.
To improve financial preparedness, Ecoffey advocates for better education, particularly targeting young adults after they enter the workforce. While concepts might potentially be too abstract before contributing to a pension, she believes pension funds could offer valuable details sessions once individuals are employed.She stresses the importance of using clear, accessible language to demystify the terminology surrounding retirement planning.
Ecoffey also encourages individuals to dedicate time each year to review their annual pension statements and actively seek clarification from their pension fund. “You always have a phone number, a contact email. Do not hesitate to solicit your cash register as there in front, you really have provident specialists who can take the time with you,” she advises.
(Sources: Interview by Coralie Claude and Thibaut Schaller, adaptation web by miroslav Mares)