Swiss voters recently backed a significant increase in state pensions in a nationwide referendum centred on improving the living standards of the elderly.
Despite warnings from the government regarding the financial feasibility of increased payments, nearly 60% of voters supported the initiative.
Additionally, 75% of voters rejected a proposal to raise the pension age from 65 to 66.
Currently, the maximum monthly state pension stands at €2,550 (£2,180; $2,760), which many argue is insufficient to cover living expenses in Switzerland, known for its high cost of living, especially in cities like Zurich and Geneva.
Rising health insurance premiums, mandatory for all residents, pose additional financial burdens, particularly for older individuals.
Certain demographics, such as women who took career breaks for caregiving and immigrants who contributed to Swiss industries decades ago, often face challenges in making ends meet.
A growing trend sees individuals working into their 70s out of necessity rather than choice, while younger generations experience increasing work-related stress and burnout.
The proposal to increase pensions originated from trade unions but faced opposition from the government, parliament, and business leaders citing concerns about affordability.
Swiss voters, known for considering government recommendations on financial matters, demonstrated a departure from past behavior by voting in favour of the pension increase, granting themselves an additional month’s pension annually through the country’s system of direct democracy.
The initiative achieved the necessary double-majority, securing both the popular vote and majorities in most of the country’s 26 cantons.
Described as a “historic victory for retirees” by Avivo, a Swiss association advocating for pensioners’ rights, the decision aligns state pensions with Switzerland’s salary system, which is paid in 13 installments, resulting in a double payment in November.
Originally designed to assist individuals before Christmas and to cover annual tax obligations, the system acknowledges that the festive season and financial responsibilities extend beyond the age of retirement.
In a clear indication of Swiss sentiments favoring a balanced life, voters overwhelmingly rejected proposals to increase the retirement age, despite government warnings about the financial implications.
Despite repeated assertions from the government that these decisions would necessitate significant funding, voters expressed confidence in the country’s robust economy, largely attributed to their contributions, suggesting a belief in Switzerland’s capacity to absorb the costs.
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