'Retirees for hire' plug gap in pensions

Their return to work soothes fears over Switzerland's $58b shortfall

The Straits Times, 5 Oct 2013

ZURICH - Swiss retirees are soothing concerns over the country's 42.4-billion-franc (S$58.7billion) pension-fund deficit by walking dogs, tending bars and giving financial advice.

The number of pensioners for hire at Zurich-based Rent a Rentner almost doubled to 2,245 this year, said Mr Peter Hiltebrand, who founded the online booking agency in 2009.

The retirees, who range from age 60 to 90, set their own fees, starting at a minimum of about 20 francs an hour.

"It started out as a crazy idea because I didn't just want to stay home all day after I retired and wanted to remain active," said Mr Hiltebrand, a 69-year-old electrician.

"I thought there must surely be other pensioners who'd be interested."

While Switzerland's gross income per capita was US$82,730 (S$103,000) last year - the fifth-highest in the world - the number of people working beyond retirement age jumped 43per cent over the past decade. The number of working pensioners rose to 143,000 last year, from 100,000 in 2002, according to the Federal Statistics Office.

Rent a Rentner, which translates as Rent a Pensioner, allows Swiss companies and private individuals to tap the expertise of retired yoga teachers, chauffeurs and bankers.

"It's not just about walking dogs and working in the garden," said 64-year-old retiree Anita Haug, who signed up with the agency after working for Citigroup in Zurich for 23 years, including eight years as a wealth manager. "There's a big demand for business and finance, because the pensioners have a lot of know-how that young people lack."

Older workers can help address the increasing costs of an ageing population, labour shortages and slowing economic growth, according to the Organisation for Economic Cooperation and Development.

Switzerland, like other industrialised nations, is facing an ageing population as life expectancy increases and birth rates decline. The proportion of Swiss people aged 65 and over is projected to climb to 24.2 per cent of the population by 2030, from 17.4 per cent of the nation's eight million inhabitants last year.

The Swiss government earlier this year proposed raising the retirement age for women to 65 from 64 to bring them in line with men.

The Senior Design Factory in Zurich employs at least 30 pensioners making knitted and crocheted hats, scarves and gloves for private clients, according to co-founder Benjamin Moser.

While many pensioners get involved with the Senior Design Factory to remain active, about half the 1,402 people, aged 50 to 70, surveyed across western Europe by Allianz SE are unsure whether they can maintain their standard of living in retirement, according to a study by Europe's biggest insurer.

Many of the respondents will need additional savings to achieve their goals, the study showed.

The deficit on Swiss occupational pensions, which are funded by employers and employees with the aim of allowing retirees to maintain their previous lifestyles, more than doubled to 42.4 billion francs in 2011, from 17.8 billion francs in 2007, as lower interest rates boosted liabilities, the latest available statistics show.

While the importance of the Rent a Rentner platform is difficult to judge, it will help boost the work participation rate in Switzerland, particularly for women, said Professor Jan-Egbert Sturm, head of the KOF Swiss Economic Institute.

"Such initiatives and ideas certainly are steps in the right direction," said Prof Sturm. "In a way it is enhancing the already flexible labour market conditions in Switzerland."

Mr Markus Deppeler, chief executive officer of Pflanzenoel.ch, said he's looking to hire three Swiss pensioners to take charge of marketing and business-to-business sales for his firm producing plant oils.

"Where young people lack the motivation to work, retired people want to work and they also bring priceless experience and know-how with them," he said.

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