FIRE basics
What is FIRE, and does it work in Switzerland?
FIRE means building a pot that covers your spending so work becomes optional. Here is how it works in Switzerland, where it helps and where it gets harder.
Inflation and purchasing power
Inflation quietly shrinks what a franc buys. Even 1 % a year adds up over a long retirement.
Your result
- Buys what this buys today
- CHF 2’968
- Same basket will cost
- CHF 5’391
- Purchasing power lost
- 25.8%
Your result, explained
In 30 years, CHF 4’000 buys only what CHF 2’968 buys today, and what costs CHF 4’000 today will cost about CHF 5’391.
Estimates for planning, not advice. Use at your own risk. Read the full disclaimer
How it is calculated
- Future cost = amount × (1 + inflation)^years.
- Purchasing power = amount ÷ (1 + inflation)^years.
Investing is how savings keep up: a return above inflation grows real buying power. See the compound interest tool and the methodology.
Frequently asked questions
Why does the calculator use today’s francs?
So that amounts decades away still mean something. CHF 4’000 a month in 30 years, in today’s francs, buys what CHF 4’000 buys now.
What inflation should I assume?
Our default is 1 %, close to the long-run Swiss average. A higher rate is a useful stress test.
Are pensions adjusted for inflation?
AHV pensions are adjusted regularly. Pension-fund pensions usually are not.
Related tools
Related reading
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