In a referendum on Sunday the 3rd of March, Swiss voters confidently voted in favour of increasing pensions for the elderly, reflecting prevailing concerns about the cost of living and the desire to create a stronger social safety net. The government’s preliminary results showed that more than 58% of voters backed the proposed additional pension – the 13th monthly payment per year, reports Reuters.
The measure, backed by the Swiss Federation of Trade Unions and centre-left parties, also needed majority support in 26 Swiss cantons to pass. The majority supported it, but opposition was strongest in cantons that pay lower taxes.
However, it is unclear how the pension increase, which will take effect in 2026, will be funded. Opponents argue that it could lead to tax increases or spending cuts and put a strain on younger Swiss citizens.
The Swiss minimum old-age and survivors’ pension is 1 225 Swiss francs (1 280 euros)
per month and the maximum is 2 450 francs (2 561 euros). For couples, it is capped at 3 675 francs (3 861 euros).
On Sunday, the Swiss also voted against an initiative to raise the legal retirement age from 65 to 66.
The proposal had been rejected by the government, businesses and the parliament, which is currently right-wing, as financially unjustified. Swiss voters have in the past been cautious about supporting measures considered risky for business.
In referendums in recent decades, Switzerland has explicitly rejected proposals that would reduce the working week and give people more holidays.
The cost of living in Switzerland is one of the highest in the world.
In an Economist Intelligence Unit report published in November, Zurich was ranked alongside Singapore as the world’s most expensive city.
According to the BBC, Switzerland is struggling with rising health insurance costs, which are compulsory for all citizens, and the elderly are finding it hard to afford them. Women who have interrupted their careers because of family responsibilities and immigrants who have been working abroad for a long time are particularly vulnerable to financial strain.
Moreover, the trend towards working until the age of 70 has become a necessity rather than a choice, while younger generations are experiencing an increase in work-related stress and burnout.
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