Inflation and Your Money: Protecting Purchasing Power in Switzerland
Why low inflation still matters, which assets keep up and how to keep your savings working.
5 min read · Currency & Economics
Life situations: Investing and Wealth Building
Switzerland has had low inflation compared with most countries, often around 0–2 % per year. Even so, prices add up over decades.
What inflation does
At 1.5 % yearly, CHF 100,000 buys what CHF 86,000 buys today in 10 years, and only about CHF 74,000 in 20 years. Cash in an account paying less than inflation loses value in real terms.
- Purchasing power after the period
- Amount needed to keep today’s purchasing power
Example with default values. Open the calculator →
Where it hits hardest
- Rents and health insurance premiums, which can rise faster than the consumer price index.
- Services such as childcare and care in old age.
- Fixed annuities that are not indexed.
What helps
- Equities and real estate have historically beaten inflation over long periods.
- Inflation-linked bonds can protect the real value.
- Negotiating pay raises at least equal to inflation.
What to do
Keep emergency money in cash, but do not hold large amounts for decades. Check the real interest you earn after tax and inflation, and invest long-term savings in diversified assets.
Illustrate the effect with the inflation calculator.
Try it yourself: Inflation Calculator
Change any input and the result updates instantly. Nothing you enter is sent to a server.
- Amount needed to keep today’s purchasing power
- CHF 134'686
- Loss of purchasing power
- 25.75 %
- Purchasing power after the period
- Amount needed to keep today’s purchasing power