Switzerland: Citizens Voted ‘Yes’ to 13th Pension But Not To Raise Pension Limits · Global Voices

The Swiss voted today (03.03.2024) in favour of paying 13th but rejected the increase in retirement age in The proposal in favour of a 13th pension raised 58.2% of the vote in Switzerland, according to provisional, but almost definitive results, which also show that it had a majority in more than half of the 26 Swiss cantons, which is a prerequisite for adoption. On the contrary, the proposal aimed at increasing the retirement age from 65 to 66 seems doomed to failure. According to the polls, a large majority of the voters were in favour of the first initiative, a trade union proposal entitled ‘To better live your pension’ which provides for the payment of a 13th pension per year, as many Swiss workers receive a 13th salary. Swiss social security monthly pensions have a margin of 2,450 Swiss francs (EUR 2,570) for a person who lives only 3,675 francs for a married couple, in a country that is regularly ranked among the most expensive in the world. The minimum pension is 1,225 Swiss francs (EUR 1,393) per month. In the city, the rent of a three-room apartment amounts to at least 3,000 francs (3,150 euros). Coffee costs more than five francs. This initiative has a precedent in Europe: neighbouring Liechtenstein, another expensive country using the Swiss franc, had adopted a similar system years ago. “Criticism of purchasing power” “In Switzerland there is, as everywhere, a crisis of purchasing power. The standard of living of pensioners is downgraded,” explains Pierre-Ive Mayar, president of the Swiss Trade Union Federation (SGB) who supports the “yes”. Jakob Ori, a pensioner invoked by the campaign for ‘yes’, is of the same opinion: “The cost of life rises vertically” and pension, “which is supposed to guarantee a minimum standard of living, does not follow”. The parties on the left support the initiative, but the right and centre parties react strongly. The government and parliament are also opposed. The government argued that the proposed increase would cost more than four billion Swiss francs a year and warned that tax increases would be needed and the financial stability of the social security system could be threatened. The government also appreciates that the proposed change for all pensioners, whatever their financial situation, will only provide a limited social benefit. “If the initiative is adopted, numerous pensioners will receive a 13th social security payment even if they do not really need it,” the federal authorities point out. Voters are also deciding on a proposal from the Liberal Party’s youth organisation aimed at a gradual rise in retirement age from 65 to 66 years over the next decade to ensure that pension funding continues. But the initiative seems to have no luck: according to the latest polls, only 35% of respondents are in favour of such a measure, while 63% are opposed.