Swiss vote to give themselves a bigger pension
In a nationwide referendum focused on improving living standards for the elderly, Swiss voters have approved an extension of their annual pension by an additional month.
Despite warnings from the government regarding the affordability of increased payments, nearly 60% of voters supported the measure in Sunday’s poll. Additionally, 75% of voters rejected the proposal to raise the pension age from 65 to 66.
Many argue that the current maximum monthly state pension of €2,550 (£2,180; $2,760) is insufficient to cover living expenses in Switzerland, where the cost of living, particularly in cities like Zurich and Geneva, ranks among the highest globally.
Rapidly escalating health insurance premiums, mandatory for all residents, pose a financial challenge for older individuals, including women who may have taken breaks from work to raise a family, as well as immigrants recruited decades ago to work in Swiss industries.
A growing number of individuals are extending their working years into their 70s out of necessity rather than choice. Meanwhile, younger generations are experiencing escalating work-related stress and burnout.
The proposal to increase pensions originated from trade unions but faced opposition from the Swiss government, parliament, and business leaders, who argued that it was economically unfeasible.
Swiss voters, known for heeding their government’s advice on financial matters, have previously rejected proposals such as granting an additional week of annual holiday. However, in this instance, they exercised their power under Switzerland’s system of direct democracy to vote in favor of extending their annual pension by an extra month.
The initiative also secured the required double-majority: getting the popular vote, and also majorities in most of the country’s 26 cantons.
The result was described as a “historic victory for retirees” by Avivo, a Swiss association that defends the rights of current and future pensioners.
The move brings the state pension into line with Switzerland’s salary system, which is also paid in 13 instalments, meaning workers get a double payment in November.
The system was originally designed to help people ahead of Christmas, and the annual tax bill. As Swiss retirees pointed out, pensions were taxed too, and Christmas fun did not stop at 65.
In a further sign the Swiss are keen that life should not be all work and no play, they also overwhelmingly rejected raising the retirement age.
These votes would, the government said repeatedly, have to be paid for.
Voters, though, looking at Switzerland booming economy, whose success is in large part thanks to their hard work, clearly believe their country can afford it.
