Headline: Swiss retirement provision and the intergenerational compact: Public-sector finances and accounting, and the impact of the TRAF and AHV 21 reforms on the first pillar of the Swiss retirement system
Pension promises from the AHV exceed its future income by about 170% of Swiss GDP. The reform projects Tax reform and AHV financing (TRAF) and AHV 21 notably improve AHV financing, but put a disproportionate burden on younger generations. Extending working careers within the context of more flexible retirement arrangements is the only measure that can stabilize AHV financing while not reducing the prosperity of any generation. Comprehensive public-sector accounting would increase transparency and improve the basis for policy decision-making.