The French are not the only ones to address the thorny issue of pensions. Eighteen months after raising the retirement age of women from 64 to 65, our Swiss neighbors voted against this Sunday to shift the retirement age from 65 to 66 for all workers. According to initial estimates from the consultation, three-quarters of Swiss people refused this measure aimed at ensuring the sustainability of financing of the old-age and survivors’ insurance (AVS) system.
On the other hand, they voted by a clear majority (58%) for the establishment of a thirteenth month for retirees, the “thirteenth annuity”. This vote was launched at the initiative of the Swiss Trade Union (USS) which denounced the sharp increase in the cost of living in the Confederation for two years. More than half of the 26 Swiss cantons have validated the proposal, a sine qua non condition for its application. This will therefore allow more than 2.5 million Swiss retirees to benefit from a serious boost by 2026, at a cost estimated by the Swiss government – opposed to the idea – of more than 4 billion of Swiss francs (4.2 billion euros). Currently, the minimum pension for a single person locally amounts to 1,225 francs per month and the maximum pension reaches 2,450 francs. A sign of the liveliness of the debates, the participation rate reached 60%, a high level for this type of consultation in the country.
It now remains to tackle the task of tax increases to finance this delicate issue. According to projections from Ofas, Swiss Social Security, the choice of this Sunday will bring forward the financial deficit of the AVS from 2030 to 2026.
