Thought of the Day

Swiss Demographic Slump


 
30 April 2025
 
The workforce of Switzerland has been falling over recent years, like in many countries in Europe, due to its fertility rate being sub-replacement for many decades [subscriber only: Europe’s Population Predicament]. As retirees live increasingly longer, and there are fewer working-age taxpayers to support them, a generational tax burden is emerging.

Number of Workers to each Dependent (65+) in Switzerland
The working-age population represents those aged 15 to 64. Period: 1950-2050.
Swiss Demographic Slump
Swiss Demographic Slump


In 1950, each Swiss retiree was supported by 7 workers, but, by 2050, it is estimated there will be less than 2 supporting. This demographic trend will become increasingly unsustainable, because the 65+ cohort costs Governments more than any other age group [subscriber only: ‘The Alarming Cost of Aging Demographics’]. This is leading to an unprecedented generational tax burden on the workforce.

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