Social Security Policy

Abstract

The Swiss social security system seems rather successful. However, the fragmented nature of the system and the inability of the political system to deal with the challenges that lie ahead constitute serious problems. The social security system is fragmented along federalist lines as well as between institutions that cater to different groups. This makes coordination difficult and generates incentives for institutions to offload clients (and costs) onto other institutions. As in other European countries, the pension system needs to be adapted to an increasingly large population of the elderly. Doing so is politically difficult, and to date, opponents have managed to defeat governmental reform proposals.