Swiss (Washington Insider Magazine)—Swiss voters have chosen to bolster living standards for retirees, approving an additional month’s pension every year in a landmark referendum. Nearly 60% of voters supported the measure, despite government warnings about affordability.
The decision marks a significant step in addressing financial challenges for elderly citizens, especially as Switzerland grapples with one of the world’s highest costs of living. The maximum monthly state pension of €2,550 (£2,180; $2,760) often falls short of meeting basic expenses, particularly in cities like Zurich and Geneva.
The Rising Cost of Living and Challenges for the Elderly
Skyrocketing health insurance premiums, which are mandatory in Switzerland, have placed additional strain on retirees. Women with interrupted work histories and immigrant workers who contributed to Swiss industries decades ago are particularly affected, struggling to cover daily expenses.
More seniors are working into their 70s out of necessity, while younger generations face increasing work-related stress and burnout.
A Divisive Proposal
The initiative, spearheaded by trade unions, faced stiff opposition from the Swiss government, parliament, and business leaders, who argued the additional payment was unsustainable. However, the referendum results signaled growing public frustration with economic hardships.
Direct Democracy in Action
Switzerland’s unique system of direct democracy empowered citizens to override governmental advice, as they had in the past when rejecting additional vacation time. By achieving both a popular vote majority and approval in most of the 26 cantons, the initiative secured a historic victory for pensioners.
Avivo, a Swiss association advocating for retirees’ rights, hailed the outcome as a “historic victory.” The reform aligns pensions with the country’s salary system, which includes 13 annual payments, offering workers a double payment in November.
This referendum underscores the power of Swiss citizens to shape policies directly, reflecting their growing concerns about affordability and quality of life in retirement.