Swiss overwhelming vote in support of ‘historic’ pension increase

Swiss voters, on Sunday (Mar 2) overwhelmingly backed a “historic” proposal to increase pension payments for the elderly as the country’s ageing population was faced with a rise in the cost of living. Meanwhile, the proposal to raise the statutory retirement age was comfortably defeated.

The call for adding a 13th monthly pension payment each year was made by the trade unions and backed by around 58 per cent of voters with less than 42 per cent of people voting against it.

Swiss voters support pension increase

The final polls had shown that the proposal may garner enough votes to pass, but the results show a more emphatic victory than suggested.

However, the separate vote to raise Switzerland’s retirement age to 66 from 65 was rejected by around three-quarters of voters. The AVIVO pensioners’ association hailed the pension increase as “a historic victory”.

The proposal ‘Better living in retirement’ promoted by the Swiss Trade Union Federation and left-of-centre parties, also required the backing of a majority of Switzerland’s 26 cantons to pass. Notably, the proposal was strongly opposed by cantons with lower taxes.

According to the results, 10 cantons rejected the move while support in six cantons was above 70 per cent and more than 82 per cent in the western Jura region.

“I’m retired now and so obviously I would like a bit more,” Mery, a 65-year-old Zurich voter told Reuters, saying that increased pension payments made sense. “It should allow me to give a little something to my grandchildren.”

The Sunday vote marks the first time that Swiss voters have accepted a popular proposal to alter the country’s social security system, reported ATS-Keystone news agency.

The vote also marked the first victory of Swiss trade unions in pushing through an initiative under the country’s direct democratic system.

Why were people opposing this measure?

The government, which currently leans to the right, had called the proposal financially unsound and warned that the pension increase would cost more than $4.5 billion (four billion Swiss francs) per year, which would require tax increases and threaten the financial stability of the social security system.

“If the initiative passes, a lot of retirees will receive a 13th social security payment even though they don’t really need it,” the government had said ahead of the vote.

Zurich, Switzerland’s biggest conurbation, is reportedly among the world’s most expensive cities. It was not immediately clear how the pension boost, which may take effect from 2026, will be funded.

Currently, Switzerland’s minimum old age and survivors (AHV) pension is $1,393 per month and the maximum is around $2,771. Meanwhile, for couples, it is $4,156.

(With inputs from agencies)