About the Concept of Financial Planning for Life
What is Lebensvorsorge?
The Lebensvorsorge combines the existing social funds into a single unified system. Everyone who lives, works and has been paying taxes in Switzerland for some time contributes to the Lebensvorsorge. In turn, it ensures everybody is protected, from childhood to retirement.
Without requiring additional funds: children receive CHF 700. For adults, the amount grows with age, from CHF 1,000 to CHF 2,450 for seniors — but this only supplements low incomes. Those who earn enough receive no additional money.
The Lebensvorsorge helps in a targeted way where a person is in financial difficulty. The principle is: every job pays off and generates additional income — the Lebensvorsorge serves as a springboard into employment.
Where does the money for retirement savings come from?
Funding is based on the reallocation of the current system. The Lebensvorsorge uses the freed-up funds from the AHV, social assistance, IV (basic benefits), family allowances, individual premium reductions, etc. This amounts to approximately CHF 70 billion per year, which continues to be used to support people with no or low income. The current payroll contributions (AHV/IV/EO, etc.) are therefore maintained for financing purposes.
The additional income contributions are offset against Lebensvorsorge payments to net zero for people above a certain income. With a low wage or no income at all, the Lebensvorsorge results in more money in one's pocket.
The Lebensvorsorge therefore offers less complexity and greater impact.
Why do we need the Lebensvorsorge?
Our social insurance system is outdated, confusing and inefficient. It creates the wrong incentives. It no longer fits social change (modern family structures, longer lives) or the challenges of the working world (AI, robotics, new employment models).
The system is in a dead end. Our society needs a simple, fair and sustainable model for a successful future.
