SWITZERLAND - The performance of Swiss public pension funds is not high partly due to restrictive investment regulations and the generally conservative investment practises of Swiss firms, according to new research.
‘Policy approaches to promote private and occupational old-age provision in Switzerland’ is a paper by Alfonso Souza-Poza and Jacob van Dam prepared for the Bertelsmann Foundation as part of a multi-country project examining old-age provision in different nations.
According to the paper, restrictive investment regulations also mean that part-time employed individuals - most notably women - and low-income earners do not receive benefits from the second pillar.
In addition, there is no competition in the current occupational pension scheme system. Souza-Poza and van Dam say certain proponents argue that benefits could improve if workers were allowed more freedom in their choice of insurer.
The authors add that the Swiss system is very complex and one potential disadvantage of this complexity is that an average person has difficulties in fully understanding it.
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