Nursing homes and health costs: planning for late-life expenses

Expenses that rise with age

The early years of retirement are often the most active. With age, leisure spending falls, but health and care costs rise: home care, domestic help, then sometimes a stay in a nursing home (EMS).

These costs are not covered by basic health insurance alone: the deductible, co-payment, support and accommodation costs largely remain the retiree's responsibility.

The cost of a nursing-home stay

A stay in a medical-social establishment has three main components: care (partly covered by health insurance and the canton), support and accommodation. The latter two are borne by the resident.

In total, a month in a nursing home often represents several thousand francs, with large variations by canton, establishment and level of care needed. Over several years, the bill can seriously erode wealth.

Home care (Spitex)

Before or instead of a nursing home, many people use home care. Part of the care services is covered, but help with daily living (cleaning, meals, support) often remains chargeable.

Staying at home can cost less than a nursing home, but requires organisation and a budget to anticipate, especially if help becomes a daily need.

The role of supplementary benefits

When pensions and wealth are no longer enough to cover costs, notably in a nursing home, supplementary benefits (PC) to the AVS and AI can step in. They aim to guarantee a minimum and cover part of the costs.

Entitlement to PC depends on your income and wealth. They are an essential safety net, but do not remove the need to plan a reserve to preserve your financial independence.

How to anticipate these costs

Setting aside a reserve dedicated to health and dependency costs, checking your insurance cover and understanding PC entitlement are key steps. For couples, one spouse entering a nursing home also affects the shared budget and wealth.

RetirePlan lets you build a rising-health-cost assumption into the projection, to check that your capital lasts the distance, even in the event of dependency.

Frequently asked questions

How much does a nursing home cost in Switzerland?

A month in a nursing home often represents several thousand francs, split between care, support and accommodation. Care is partly covered; support and accommodation remain the resident's responsibility, with large cantonal differences.

Who pays for the nursing home if wealth is not enough?

When pensions and wealth no longer cover the costs, supplementary benefits (PC) to the AVS and AI can step in to guarantee a minimum and cover part of the costs, depending on your financial situation.

Is home care reimbursed?

Part of the care services (Spitex) is covered, but help with daily living (cleaning, meals, support) often remains chargeable. Staying at home therefore needs a budget to anticipate.

Should you plan a reserve for health in retirement?

Yes. Health and dependency costs rise with age and are not all covered. A dedicated reserve protects your financial independence and that of your spouse.