In this article, we will take a look at the 12 cheapest places to retire in Switzerland. If you wish to skip our detailed analysis of the economy of Switzerland and retiring there, you may go to 5 Cheapest Places to Retire in Switzerland.
Economy of Switzerland
Switzerland, or the “Land of the Alps”, is reputed to be one of the most fascinating countries in the world. The country, with its majestic Swiss Alps, enchanting lakes, lush valleys, and picturesque villages, is undeniably a haven for nature enthusiasts. Moreover, the country offers an unparalleled quality of life coupled with a resilient and stable economy. It is also largely insulated from the high inflationary environment other developed countries face, primarily due to factors such as a strong currency, high GDP per capita, and energy self-sufficiency. Boasting one of the highest GDP per capita, it is also one of the most prosperous nations in the world. As of 2023, its GDP stands at $807 billion, while its GDP per capita is $94,830.
January 2023 saw Switzerland’s inflation rate rise to 3.3%, considerably lower than other developed nations. Given its strong and resilient economy, many investors in the US may seek diversification in a foreign market such as Switzerland’s to reduce risks. Investors seeking exposure to a diverse range of companies here should consider the iShares MSCI Switzerland ETF (EWL), a fund primarily investing in Swiss equities. The fund seeks to track the MSCI Switzerland 25/50 Index.
The past 10 years has witnessed the iShares MSCI Switzerland ETF (EWL) provide an average annual return of 7.01% per annum. These funds, though slightly underperforming relative to the S&P 500 Index (having produced 10.12% per annum), have proved to be less volatile. In conclusion, the iShares MSCI Switzerland ETF (EWL) presents an appealing risk-return profile and represents a potential diversification prospect for investors. However, EWL also stands as a stable and mature portfolio of stocks, and therefore, may not have considerable return protential.
Retiring to Switzerland
Owing to its high standard of living and excellent healthcare, many expat retirees are choosing to retire to Switzerland. While it may not be the cheapest country to relocate to, many retirees still choose this piece of heaven on earth for all that it offers. If you’re a potential retiree with limited or no savings, you may explore our articles on the best places to retire in the US on social security, I am 50 and have no retirement savings, or even the best places in the world to retire on social security.
However, if Switzerland is your dream retirement destination, you will already know that the country is one of the most affluent places to live in the world. The most expensive cities in Switzerland are Zurich, Geneva, and Basel. Rental costs have risen over the years, compelling many to rent than buy a house in the country. Linda Rosenkranz, General Secretary of ASLOCA, told reporters that the average household is now paying 370 francs (around $400) more a month compared to the year before. Moreover, a single expat’s average cost of living in cities such as Zurich is around $4,267.
Of course, visiting for a month or two isn’t a problem if you are a tourist. There are many affordable places to live in while you are there. One of the cheapest cities in Switzerland for tourists is possibly St. Gallen, an affordable option compared to the larger cities. Its charming old town, historical significance, and outdoor activities make it a prime spot for visitors who wish to explore the country.
There are other cities and cantons to explore as well, such as Glarus, Uri, and Bern. For retirees, however, searching for the cheapest place to stay in Switzerland is an important question. For this reason, we have compiled an entire list of the cheapest places to retire in the country so expat retirees can make an informed decision.
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Methodology
In order to compile the list of the 12 cheapest places to retire in Switzerland, we have relied on the Federal Statistics Office data on average rental costs across the 26 cantons of Switzerland. The rental costs have been calculated based on a range of factors, such as the ratio of larger apartments to smaller ones in each canton, the average square meter size of apartments, how old the average apartment is in each canton, and how popular the canton is as a place to work or start a business. The top 12 cheapest cantons have been selected for our list, having the cheapest rents in Switzerland.
Next, we added the average cost of utilities ($225), the average cost of groceries ($500), the average cost of entertainment ($350), and the average cost of health insurance ($446) for an individual expat sourced from International Wealth to the rental averages. We then ranked the places based on our final costs of living. Places were ranked in descending order from the highest to the lowest cost of living.
Readers should note that Switzerland is an expensive country in itself, and the places mentioned are reasonably affordable in comparison to other areas within the country.
Here are the cheapest places to retire in Switzerland:
12. Saint Gallen
Cost of Living: $2,938
St. Gallen lands on our list of cheapest places to retire in Switzerland, with an average rental cost of $1,417 only. Add in groceries, health insurance, utilities and entertainment, and the total cost of living rounds up to $2,938 per person. While this figure may not be the most affordable, it certainly is reasonably affordable than cities such as Zurich.
This canton is located in northeastern Switzerland. Retirees love it for its high quality of life, scenic surroundings, and also its high-quality healthcare. The canton is also home to the University of St. Gallen, a good opportunity for those who wish to engage in lifelong learning. St. Gallen, its capital city, also plays host to the St. Gallen Festival, one of the largest open-air music festivals in the country.
11. Grisons
Cost of Living: $2,928
Grisons, or Graubünden in German, is another cheap retirement destination in Switzerland. It is revered for its stunning Alpine landscapes, picturesque villages, and the plentiful recreational opportunities available for retirees. Individuals especially love to relish the Swiss National Park, where they spend time skiing, hiking, and strolling in the outdoors.
The canton is brimming with charming villages that offer a relaxed, laid-back pace of life for retirees to relish. The region also offers a rich cultural heritage and distinctive cuisine to try out. Average rental costs are around $1,407, while total cost of living is around $2,928 on average.
10. Bern
Cost of Living: $2,926
The Canton of Bern is one of Switzerland’s largest and most diverse cantons. Apart from its reasonably affordable cost of living, it is revered for its scenic landscapes, rich cultural heritage, and historical sites. The capital city of Bern is a UNESCO World Heritage Site, a well-preserved medieval town offering various historical landmarks and cobblestone streets to cherish. Bern also offers state-of-the-art medical facilities to its citizens, and retirees have access to good medical care. Average rental costs in Bern are $1,405, while total costs of living are around $2,926 for an individual expat retiree.
9. Schaffhausen
Cost of Living: $2,909
Schaffhausen’s small yet charming canton offers a unique and appealing retirement destination for those wishing to relocate to Switzerland. The area offers an exceptional quality of life, stunning natural beauty, as well as a welcoming and inclusive community. Rhine Falls, one of the largest waterfalls in Europe, together with picturesque landscapes, provide the perfect backdrop for retirees to call home. While Swiss German is mostly spoken in the canton, the area also has English-speaking locals to communicate and socialize with. The average rental costs in the area are $1,388, while the total cost of living is $2,909.
8. Uri
Cost of Living: $2,888
Uri, located in central Switzerland, is one of the cheapest places to retire in the country. Retirees love it for its quiet and laid-back atmosphere, as well as its rich cultural history. The scenic beauty of the Swiss Alps and the pristine lakes make Uri seem like a chunk of heaven on earth, offering plenty of opportunities for retirees to enjoy the outdoors, too. The entire Switzerland offers world-class healthcare, and Uri is no exception. Average rental costs in the area are $1,367, while total living costs are an estimated $2,888.
7. Appenzell Ausserrhoden
Cost of Living: $2,886
Appenzell Ausserrhoden is an affordable retirement destination in Switzerland. The scenery is absolutely mesmerizing here, comprising rolling hills, lush valleys, and majestic mountains. The environment is clean and well-maintained, and retirees get to enjoy a very high quality of life in the area. Average rental costs in Appenzell Ausserrhoden are around $1,365, and the total cost of living adds up to $2,886.
Besides the comparatively affordable cost of living, the canton is also known for its rich cultural heritage. Local culture and traditions keep retirees engaged and help them connect with the community. The pace of life is calm and slow, a huge appeal for retirees who wish to enjoy a peaceful time in their golden years.
6. Solothurn
Cost of Living: $2,871
The canton and it’s respective city of Solothurn are popular retirement destinations in Switzerland, revered for their scenic beauty, efficient public transportation system, and cultural richness. The Jura mountains, along with the lush forests, rolling hills, and the countryside, are a sight for sore eyes. Major Swiss cities such as Zurich and Bern are easily accessible as the canton is well-connected, making it easy to access the amenities and services that they offer. Also known as the “City of Ambassadors”, Solothurn is the country’s finest town and holds historical significance as a diplomatic centre. Average rental costs in Solothurn are an estimated $1,350, and total costs of living in the area average around $2,871.
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Disclosure: none. 12 Cheapest Places to Retire in Switzerland is originally published on Insider Monkey.