Long term care insurance in Switzerland

Hello, I was reading some articles about retirement and came across the concept of “retirement consumption gap” where people end up spending less than they can afford to during retirement. This is something I can totally relate to. One of the biggest cause for this is saving for the rainy day especially when you are no longer employed. This brings me to the main point of this post:

One of the biggest contributor to my (and probably most people’s) financial uncertainty is the long tail risk that comes with old age. I know many people who require partial care because of old age related illness (stroke, dementia, etc.). The risk is magnified for us as we will not have children and so will not have a big family based support system which means higher chances of needing home care or going into nursing home. Obviously these are all bad scenarios but probability of them occurring go up the older I will get. I don’t want to save for (or worry about) a long tail risk when I am in my 60s by not spending as much as I can afford to.

Enter long term care insurance products. I am a big believer in solid insurance products that can help me manage and plan for “worst case” scenarios even though there might be some cost attached to it. As such, I want to start looking into such insurance products to see if any of them would be suitable for me. I am pretty young but often it is worthwhile to consider such products at an early age. Also, I am planning to stay in Switzerland after retirement.

What about you? Have any of you looked into this or maybe even insured yourself? Would be great if you could share your research for the uninitiated.

Hmm, I see your point but I am not fully sure if it as well applies in Switzerland. Social security here is generious with regard to elderly care, and this is mainly a matter of values. Meaning that as long as you do something stupid that could given later changes in laws turn difficult like cash-withdrawing your second pillar; you should be looked after no matter what.

How about you:

  1. Don‘t take out Cash from your Second Pillar (neither home purchase nor cash retirement value)
  2. Ensure you have enough 1st Pillar, Second Pillar and Individual Savings Annuities + Cash Draw-Up to comfortably live until 85
  3. Keep another 100k or so in cash just in case you require some special care
    => If that then proofs insufficient either due to longevity and/or care requirements; well bad luck and let social security cover the gap?

If at 85 your first and second pillar proof insufficient for elderly care; and you actually demonstrated you didnt „steel“ from these schemes and you made it that far, trust me that as long as Swiss values remain, you will get the Delta funded so that you can comfortably live in anuce elderly care institution. Might cost the state another 5k a month nut so be it, the State will pay it.

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