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DEMOGRAPHICS

What Switzerland needs to do to accommodate 10 million residents

Forecasts say the Swiss population could swell to 10 million in the coming years. How would the country accommodate the increasing number of people?

What Switzerland needs to do to accommodate 10 million residents
More housing will be needed for increased population. Photo by Justin TALLIS / AFP

Some studies indicate that Switzerland’s population is expected to exceed 9 million people this year (from the current 8.8 million), and reach the 10- million mark a few years down the road,

This growth is due to several factors, one of which is that people in Switzerland are living longer — in fact, according to some figures, the country has the highest life expectancy in the world.

Chart: OECD

Another important factor is that the number of foreigners who have settled in Switzerland in the past few years has grown significantly.  

“Switzerland has been in a situation of uninterrupted demographic growth for several decades, and this is explained in particular by the arrival of young migrants, who also contribute to the Swiss birth rate,” according to Philippe Wanner, professor at the Institute of Demography and Social Economics at the University of Geneva. 

This prospect is prompting MPs to ask the Federal Council to develop scenarios on how the small country can make room for that many residents.

Specifically, deputy Judith Bellaiche has called on federal authorities to devise, already now, a plan on how to prepare the country’s infrastructure for the growing numbers.

In response, the Federal Council said it “will take up these concerns in the context of legislative planning from 2023 to 2027.”

What exactly does this entail?

These are the main areas where measures would have to be taken:

Housing

Housing, especially in cities where most immigrants settle, has become scarce.

In Zurich, for instance, 30,000 foreign nationals settled there in 2022.

And according to a forecast by the Zürcher Kantonalbank (ZKB), more people are likely to move to the Zurich area this year as well — only to be faced with a shortage of dwellings.

READ ALSO: Zurich hit by affordable housing shortage amid record-high immigration

In other high-demand housing markets, like Geneva, the situation is similar.

To remedy the situation — and ensure that expanded population will find accommodations — the government must attack the root of the housing problem.

One way would be to ease construction regulations to allow more dwellings to be built. Right now, dense construction is becoming increasingly problematic because of high land prices in many regions, along with noise protection regulations.

Various politicians are already proposing this, and other measures to counteract the housing shortage.

READ ALSO: How can Switzerland solve its housing shortage and curb rents?

Healthcare system

There are more than 280 hospitals throughout Switzerland, and the general level of care is excellent.

Except during the Covid pandemic, when these facilities became saturated, in normal times access to patient care is not a problem.

But is Switzerland’s system ready to handle the influx of more people?

Only time will tell whether the current number of public hospitals and private clinics suffices. A major problem, however — unless it will be resolved in the meantime — is a shortage of healthcare workers.

For instance, there are already about 15,000 too few nurses in Switzerland and, unless more are trained, there may not be enough to care not only for the current population but even more so, for newcomers.

In January 2023, the government made plans to improve working conditions of medical personnel — including fewer hours and better pay — in order to prevent essential staff from resigning, and therefore ensuring enough qualified personnel in Switzerland’s hospitals. 

Public transport

One of the arguments brought forth by anti-immigration groups like the Swiss People’s Party is that the more people there are in Switzerland, the more overcrowded public transport will become.

However, beyond stating that in the event of higher population the country will need “a robust and strong railway infrastructure,” the Swiss Federal Railways (SBB) has not yet presented a concrete plan to tackle the 10-million population. 

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MONEY

Do adult children in Switzerland have to support their parents financially?

Usually, it is the parents’ responsibility to ensure their kids are well taken care of financially. But can Swiss authorities force the children to return the favour in times of need?

Do adult children in Switzerland have to support their parents financially?

In most cases, once children are grown up and out of the house, they are (or at least should be) self-sufficient in terms of finances.

Parents too should breathe a sigh of relief that they are no longer obligated to pay for their children’s expenses, except perhaps for giving them some money here and there as a gift.

This is what happens in the best-case scenario.

But what if things don’t go according to this plan — for instance, if the parents find themselves in financial straits and can’t  afford to pay their bills?

Family obligations

Generally speaking, the truly needy people who don’t have enough income to pay for their basic living expenses will receive financial help from the government, in the very least in the form of the health insurance and housing subsidy.

READ ALSO: Can I get financial help in Switzerland if I’m struggling to pay the bills?

However, before doling out public money, authorities will see whether relatives should be made to help the struggling individuals pay their bills.

(In this context, ‘relatives’ means only those in the direct line of descent: grandparents, parents, and children.)

They will do it by checking the tax status of these relatives — how much they earn and what other financial assets they have — to determine whether, and how much, they should be paying toward their parents’ expenses.

Obviously, you will be expected to pay up only if your own financial situation allows it; you will not be forced to part with your money if you have very little of it yourself.

 ‘Favourable financial circumstaces’

Based on a Federal Court ruling, if the adult child  lives in ‘favourable financial circumstances’ they are required to help out their struggling parents.

The Court defined ‘favourable financial circumstances’ as income and assets allowing a comfortable life.

‘Comfortable life’, in turn, was defined by the Swiss Conference for Social Welfare (SKOS), as a taxable annual income of 120,000 francs for a single person, and 180,000 francs for married couples.

“If you have minors in your household, the limit is increased by 20,000 francs per child,” according to AXA insurance.

It goes on to say that you can deduct an exempt amount from your taxable assets.

“Your annual depletion of assets is deducted from the remaining amount. This means that if you are obligated to provide financial support, you are permitted to use part of your assets yourself each year; you don’t have to devote your entire assets to providing support.”

At between 18 and 30 years of age, this is 1/60th per year; from 31 to 40, 1/50th per year; 41 to 50, 1/40th per year; 51 to 60, 1/30th per year; and from the age of 61,1/20th per year. 

Are there any exemptions to these rules?

Aside from not having sufficient funds, you could be exempted from paying if, say, your parents, or parent, have not lived up to their own financial obligations toward you.

In Switzerland, parents are required to  provide financially for their children until the age of majority, and even beyond that if they are still studying or undergoing vocational training — typically, until the mid-20s.

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