Schild says in a Swiss ski federation statement that "mentally, I'm no longer ready to push myself to the limit."
The 31-year-old speed specialist missed all of last season, and her back injury persisted through summer training.
Schild won silver at the 2006 Turin Olympics in the showcase Alpine event won by Michaela Dorfmeister of Austria.
She missed the 2010 Vancouver Olympics after sustaining a serious knee injury in training at the final World Cup meeting before the games.
Schild got her only World Cup victory in a super-G race at Lake Louise, Canada, in December 2007.
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