Financial outlook: the increasing burden of health insurance
In 2025, many Swiss people expect their own financial situation to deteriorate. Health insurance in particular is a cause for concern.
27.12.2024
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1. Low-income earners are financially pessimistic about 2025
The amount of income people earn largely correlates with their confidence in their financial situation. This is the finding of a survey by Comparis (only available in German).
37% of respondents with an income of up to 4,000 francs expect a worse financial situation in 2025 than in 2024. This figure is 31% for people with an income of 4,000 to 8,000 francs. Only 18% of respondents with an income of over 8,000 francs expect a deterioration in their financial situation in 2025.
Inflation in recent years has disproportionately affected low-income people as they spend a greater proportion of their budgets on essentials such as food and rent. Higher-income households have to make fewer compromises and are able to invest significantly more money in assets. This brings in additional income and creates positive sentiment.
2. Health insurance premiums are particularly concerning
The income gap is particularly evident when it comes to health insurance premiums. Half of low-income households have at least occasional difficulty paying premiums. For middle-income households, it’s 43%. For those with a high household income, this figure is only 19%.
For 75% of Swiss people, health insurance premiums are the main reason why they expect a worse financial situation. At 33%, rising rents and mortgage interest burdens are also a significant cause for concern. The loss of a partner’s job is the third most commonly cited concern.
Although the financial situation has not fundamentally deteriorated for the majority of people in Switzerland, individual items such as health insurance premiums are putting massive pressure on their wallets.
3. Reduced spending on impulse purchases and electronic products
71% of respondents refrain from unnecessary expenses and impulse purchases as a way to save money. In addition, two-thirds of Swiss people use discounts when shopping. Almost half compare the prices of different companies before shopping.
62% of respondents are most likely to refrain from new technology and electronic products. 60% of Swiss people can do without new clothes and accessories.
Comparis consumer finance expert Michael Kuhn says: “When people need to tighten their belts, they don’t always have to have the latest trends or models. Existing goods are often used for longer in this case.”
4. Climate debate loses influence
In December 2024, only 24% of respondents say that the climate debate has a large to very large influence on their decisions. A year earlier, it was still a good 29%. 30.3% see no influence of the climate debate on their behaviour. In 2023, this share was 19.7%.
5. Young people are optimistic about the future
43% of people in Switzerland expect a better financial situation in five years. People up to the age of 35 are most optimistic: 31% believe that their financial situation will be much better by 2029 than in 2024. For 56- to 74-year-olds, it is only 3%.
This article was first published on 28.12.2023
