Swiss households' real estate assets, now more transparent
Zurich, Switzerland (GenevaLunch) – The net worth of Swiss households fell in 2008 from an average of CHF334,000 per capita to CHF312,000. About CHF200,000 of this is real estate and claims against insurance and pension plans. The drop in assets, the first since 2002, was due to sharp falls in stock market values. It would have been worse but for higher real estate values, which provided something of a safety net. Real estate assets, CHF1,315 billion in total, accounted for 43 percent of all household assets at the end of 2008, up from 39 percent the previous year.
Real estate prices climbed in 2008
The total value of households’ real estate rose by CHF73 billion in 2008.
The figures were released by the Swiss National Bank (SNB) Friday 20 November, as part of the national financial accounts. This is the first year that assets include households’ real estate. The report notes that:
“financial assets held by households declined by CHF199 billion (10.4%) to CHF1,718 billion, while assets held in real estate increased by CHF73 billion (5.9%) to CHF1,315 billion. Liabilities rose by CHF15 billion (2.4%) to CHF629 billion. As a result of these developments, households’ net worth fell by CHF 141 billion (5.5%) to CHF2,403 billion.”
Elderly people in the United States are increasingly coming out of retirement to look for work because of the recession. The need to pay for housing, medical bills and even food is forcing older workers back into the labour market, according to a study by the non-governmental organization Experience Works. Almost half of the 2,000 low-income survey participants over 55 years old need to work to keep their homes, the study says. Experience Works is the “nation’s largest nonprofit provider of community service, training and employment opportunities for older workers,” according to Reuters.
The news agency reports US Department of Labor data as showing that in August 2009 two million people over the age of 55 were looking for work, an increase of 69 percent over August 2008. US News reports a glimmer of hope, however, in noting that the unemployment rate for workers over 55 decreased slightly from June 2009 to July. Unemployment figures do not include people out of the work force, for example retired people, who have decided to look for jobs again. US Bureau of Labor Statistics spotlight on older workers, July 2008
Bern, Switzerland (GenevaLunch) - Switzerland’s pension funds, known as the deuxième pilier, or second pillar in the retirement system, need help immediately, a federal government study published Friday 17 July shows. The funds have been badly diminished by the economic crisis and the fall in stock markets. The report recommends immediately applying a lower interest rate and raising the amount paid in, in order to boost reserves.
Bern, Switzerland (GenevaLunch) – SSR, Swiss public broadcasting company, will lose its director general, Armin Walpen, and its deputy director general, Daniel Eckmann, at the start of 2011. Walpen has confirmed that he will retire 31 December 2010 and Eckmann earlier announced that he will leave at the end of January 2011, a month later. SSR will begin the search for its new senior management team at the end of August 2009.
Geneva, Switzerland (GenevaLunch) – Francis Gurry, the director general of Wipo (World Intellectual Property Organization) since November 2008, asked for and received approval for a set of changes to personnel policy as part of his measures to strengthen the organization’s management, reports Intellectual Property Watch. They include a scheme to reduce personnel at a time when Wipo user fees have declined because of the economic crisis. This would allow staff members to retire or separate from the organization and then return after seven years, if the director general agrees. CHF30 million has been set aside for this purpose.
Neuchatel, Switzerland (GenevaLunch) - The combination of a larger student population in coming years and a steep rise in the number of teachers reaching retirement age could well lead to a shortage of teachers in Switzerland, the 2008 Education Statistics published by the federal statistics office indicates. Hardest hit are likely to be primary schools, where 45 percent more teachers will be retiring between now and 2018. Secondary schools will see a 20-25 percent increase in retirements.
Foreign students make up 44% of specialized education classes
Zurich, Switzerland (GenevaLunch) - Jean-Pierre Roth, who has been chairman of the Governing Board of the Swiss National Bank since January 2001, has announced his retirement at the end of 2009. He joined the SNB nearly 30 years ago, and he has been a member of its Governing Board since May 1996.
Bern, Switzerland (GenevaLunch) – The Swiss government will be lowering the interest rate it pays on obligatory retirement insurance, due to current market conditions, from nearly 2.5% to 2%, starting in January 2009.
Bern, Switzerland (GenevaLunch) – The Swiss Federal Council Tuesday morning issued its stance on the AVS retirement age vote that citizens will decide at the polls 30 November, saying it is against the popular initiative launched by the Union Syndicale Suisse.
Bern and Geneva, Switzerland (GenevaLunch) – The most thorough study ever undertaken of Swiss households’ financial picture indicates that the gap between rich and poor will grow unless changes are made to the AVS (social security) system. A team at the University of Geneva undertook the study for the Swiss Federal Social Insurance Office, gathering data on 1.5 million people, about one-seventh of the country’s population. Among its findings:
- people aged 55-75 make up the wealthiest slice of the population
- those at the greatest risk of poverty are single women of working age, women raising children alone and families with more than three children (one-fifth of large families are hit by poverty)
- 6% of those receiving AVS payments fall under the poverty line
- the three pillar Swiss retirement system generally works well but needs to take greater account of those at risk financially.
Swissinfo quotes the head of the federal office, Yves Rossier, as saying that the current retirement age doesn’t appear to make much sense in the light of the study: only 5% of retired people count on their state pension fund and before age 70 that slips to 2.5%.
Details: swissinfo, TSR (Fre)
