Rosalind Evans
Switzerland is standing at a crossroads as its citizens prepare to vote in referendums that could significantly alter the landscape of pensioners’ lives. With an aging population and the cost of living continuing to rise, Swiss voters are faced with two proposals: one to increase the retirement age and another to boost pension payments. While the former seems likely to fail, the latter, a proposal championed by Swiss trade unions for a “13th monthly pension payment” mirroring the “13th month” salary expected in Switzerland, appears to have a fighting chance of approval.
The “Better Living in Retirement” initiative responds to retirees’ financial strains in one of the world’s most expensive countries. With monthly social security payments reaching up to 2,450 Swiss francs for individuals, the proposed increase aims to provide relief against high living costs. Despite the initiative’s popularity among voters, its success remains uncertain, with recent polls showing a narrow lead for the “yes” campaign.
The proposal has received mixed reactions, with left-leaning parties showing support, while right-wing, centrist parties and the Swiss government and parliament stand in opposition. Critics, including the government, argue that the initiative could pose a financial risk to the social security system, necessitating tax increases without significantly benefiting those in genuine need. The Swiss People’s Party has labeled the proposal “irresponsible,” fearing it would encourage freeloading on the social security system.
Despite these challenges, supporters of the initiative remain hopeful. Pierre-Yves Maillard of the Swiss Trade Union Federation (SGB) highlighted the “purchasing power crisis” facing retirees, a sentiment echoed by retirees themselves. The debate underscores the broader issue of financial security in retirement against the backdrop of Switzerland’s high cost of living.
The referendum also includes a proposal to raise the retirement age from 65 to 66, aiming to secure the pension system’s financing. However, this initiative seems unlikely to pass, with a significant majority expressing opposition in recent surveys. This follows a narrow decision two years ago to equalize the retirement age for men and women at 65.
As Switzerland’s direct democracy system brings these issues to vote, the outcomes will reflect the populace’s priorities in balancing financial stability with the needs of its aging population. With polls set to close at noon on Sunday, initial results will soon reveal Switzerland’s path.
