ZURICH (Reuters) – Switzerland held a referendum on Sunday to vote on increased pension payments for the elderly, despite government concerns about its affordability. Preliminary projections by public broadcaster SRF indicated that 58% of participants supported the extra pension, a 13th monthly payment per year, while 42% were against it. This outcome was a more decisive victory than final polls had predicted.
The measure, championed by the Swiss Trade Union Federation and left-of-centre parties, needed approval from a majority of Switzerland’s 26 cantons to pass. With the margin of victory, it was likely to succeed, according to the broadcaster. Lukas Golder of polling firm gfs.bern described this as a significant milestone from a union perspective.
Despite opposition from the government, business lobbies, and the right-leaning parliament, Swiss voters showed overwhelming support for the pension increase. Historically, Swiss voters have been cautious about endorsing measures perceived as risky for businesses. The vote for pension contrasts with previous referenda where proposals to reduce the working week and increase holidays were rejected.
Concerns about the high cost of living in Switzerland were a driving force behind the pension vote. Zurich, the country’s largest city, was ranked alongside Singapore as the world’s most expensive city in a study published by the Economist Intelligence Unit. Many citizens like 65-year-old Mery believe that increased pension payments are necessary. Mery expressed her desire for a little extra income for her leisure and to support her grandchildren.
The implementation of the pension boost, scheduled for 2026, raises questions about its financing. Currently, the minimum old age and survivors (AHV) pension in Switzerland is 1,225 Swiss francs ($1,393) per month, with the maximum capped at 2,450 francs. For couples, the pension is capped at 3,675 francs.
Swiss voters also decided on an initiative to raise the statutory retirement age, which was ultimately defeated. The outcome of the referendum reflects the significant concern among the Swiss population regarding retirement benefits and the affordability of living expenses in the country.
(Reporting by Dave Graham; Editing by Nick Macfie)
