Insights into employer retirement perspectives
In an ageing population, the importance of pensions cannot be overstated. As the workforce evolves and the competition for talent intensifies, having a robust pension strategy is crucial for attracting and retaining top talent. This article provides insights drawn from WTW’s recent surveys including this year’s WTW Western Europe Retirement Survey (employer perspective) and the Global Benefits Attitudes Survey (employee perspective) from last year.
Switzerland’s retirement landscape continues to evolve. Employers are aiming to modernise pension strategies to meet workforce expectations, while employees themselves express growing concerns about financial security in later life. Several clear themes and data points illustrate the direction of Swiss retirement trends in 2025.
Support for employees nearing retirement is now a top priority, with 66% of companies placing it high on their agenda. At the same time, 63% are expanding the use of digital portals and online tools to make pensions more understandable, accessible and interactive.
63% are expanding the use of digital portals and online tools to make pensions more understandable, accessible and interactive.
These priorities reflect broader trends in workplace benefits, where digitalisation and personalisation are now expected. Interactive portals, financial wellbeing programmes, and retirement planning tools enable employees to better understand the value of their pension benefits. This not only increases employee engagement but builds loyalty and trust in the employer. It is encouraging that employers are prioritising these elements, but it also suggests they are currently lacking in those areas and indicates there is work to be done by employers and their pension funds.
Retirement benefits are increasingly seen as a lever for competitiveness. 63% of employers are planning to benchmark their provision against market peers, and 18% expect to improve retirement benefits within the next three years.
These improvements can take different forms, such as higher contribution rates or enhanced death and disability coverage, but the motivation is clear: in Switzerland’s competitive labour market, especially in high-demand sectors, strong retirement provision continues a decisive factor in attracting and retaining talent.
A gradual shift continues to occur in the fully insured pension fund market. The survey reveals that 31% of companies currently using fully insured arrangements are considering moving to non-fully insured collective foundations.
Fully insured solutions have traditionally provided (and continue to provide) stability and risk transfer, particularly for small and mid-sized companies. However, they can be rigid and costly. Other collective foundations, by contrast, allow for more tailored investment strategies and governance, potentially improving efficiency and retirement outcomes for employees for the same contributions. This shift is consistent with broader Swiss retirement trends, where employers are seeking greater flexibility and value.
Defined contribution “1e” top-up plans continue to be an important feature of the Swiss retirement landscape. 26% of companies already have such plans in place, while an additional 17% are planning or considering implementation.
These plans give higher earners the ability to choose their own investment strategy for salary components above CHF 136,080. For employees, this offers greater flexibility and ownership and for employers, it aligns benefits with the demand for individualisation and limits exposure to balance sheet and P&L cost volatility.
Despite these structural changes, employees remain cautious about their retirement readiness. 73% believe they are not saving enough, and 15% expect to work until age 70 or beyond.
These figures underscore the gap between employer provision and employee confidence. Rising life expectancy, inflation, and evolving lifestyle expectations contribute to this sense of insecurity. Companies that combine clear communication, flexible plan design, and financial education will be better placed to strengthen employee trust in their retirement outcomes.
The survey results illustrate a system in transition. Swiss employers are seeking to modernise retirement plans, strengthen employee engagement, and explore more flexible funding models. At the same time, employees are voicing concerns about retirement adequacy and the need for stronger support.
Three developments are set to shape the future of Switzerland’s pension landscape:
For employers, the challenge will be delivering on these ambitions while managing costs while for employees, the priority is likely to be confidence in their ability to retire securely.
