How Does Income and Financial Satisfaction Change with Retirement? Insights from Swiss Panel Data

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See all articles by Yvonne Seiler Zimmermann

Yvonne Seiler Zimmermann

Lucerne University of Applied Sciences and Arts, School of Business, Institute of Financial Services Zug, IFZ

Heinz Zimmermann

University of Basel - Center for Economic Science (WWZ)

Date Written: January 6, 2021

Abstract

We analyze the change in income on retirement on a person-by-person basis using Swiss household panel data, and the financial satisfaction associated with that change. Our results indicate that self-employed individuals exhibit a statistically significant higher income-ratio and improvement in financial satisfaction than employees. Moreover, persons with a higher absolute income during their active years exhibit a significantly lower income-ratio. Additionally, persons in the supra-mandatory tier of the system are less satisfied with their financial situation after retirement. Overall, the current system benefits persons in the middle-income range with a working income within the highly regulated part of the system.

Keywords: Retirement income, pension system, financial satisfaction, pension regulation

JEL Classification: G23, I31, J14, J26, J32

Suggested Citation

Seiler Zimmermann, Yvonne and Zimmermann, Heinz, How Does Income and Financial Satisfaction Change with Retirement? Insights from Swiss Panel Data (January 6, 2021). Available at SSRN: https://ssrn.com/abstract=3759740

Yvonne Seiler Zimmermann

Lucerne University of Applied Sciences and Arts, School of Business, Institute of Financial Services Zug, IFZ ( email )

Campus Zug Rotkreuz
Suurstoffi 1
Rotkreuz, CH-6343
Switzerland

Heinz Zimmermann (Contact Author)

University of Basel - Center for Economic Science (WWZ) ( email )

Peter Merian Weg 6
Basel, 4002
Switzerland
+41 61 267 33 16 (Phone)
+41 61 267 08 98 (Fax)

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