4 Schwerpunkt THEODORA PETER Many people imagine that Switzerland is a rich country where no one has any financial worries. After all, Swiss living standards are among the highest in Europe. Luxembourg and Norway are the only two countries on the continent with higher disposable income. But Switzerland is a haven of prosperity for only 20 per cent of households – i.e. where monthly gross income exceeds 8,508 Swiss francs for a single person, or 17,867 francs for a family of four. All other households have to get by on less. Households in the lowest 20 per cent income bracket have to make do with under 3,970 francs (single person) or under 8,338 francs (a couple with two children unRich Switzerland and its cost-ofliving crisis Switzerland is considered to be an island of prosperity, but life in one of the world’s richest countries is more expensive than ever. Even middle-income households are buckling under the high cost of things like healthcare and housing. a family of four. For an idea of how much a lower-middle-income family have to pay in living expenses, meet the fictitious Meiers on page 6. Money is tight for families The 2024 Family Barometer, published by the umbrella association Pro Familia Switzerland, reveals that financial pressure is increasing particularly for parents with children. In this latest survey, 52 per cent of respondents said their income was insufficient or barely sufficient. This is compared to 47 per cent last year. Most families are scarcely able, if at all, to save for a rainy day or pay voluntarily into a Pillar 3 pension scheme, with two thirds saying they der 14). These latest figures from the Federal Statistical Office (FSO) relate to the year 2021. Gross income means the total income earned or received by a household, i.e. wages, pension or other sources. According to the FSO, middle-income households account for around 60 per cent of Switzerland’s resident population. But there are also huge differences between the highest and lowest middle-income earners, because the middle-income bracket refers to households with gross income of between 70 and 150 per cent of the national median: including both a single person who earns 8,500 francs a month and a pensioner with an income of just under 4,000 francs, while ranging between 8,338 and 17,867 francs for Swiss Review / May 2024 / No.3 4 Focus
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