"The time has come to put an end to this," Schild said in a statement.
"I feel my mind is no longer willing to push my body to its limits. Under these circumstances it would be too dangerous to keep skiing."
The 31-year-old Swiss, who won downhill silver at the 2006 Turin Olympics, missed the whole of the last World Cup season with a herniated disc.
She won one World Cup race, the 2007 Lake Louise downhill in Canada, and missed the 2010 Vancouver Winter Olympics because of a knee injury.