The Swiss rejected in a referendum delaying their retirement until age 66 and approving extra pay

Swiss voters decided this Sunday not to delay their retirement age by one year, which is currently set at 65. On the other hand, he has approved extra pay for retirees, a day after national and local referendums that put the country’s pension system at risk.

With 100 percent of votes counted in 26 cantons, “no” to retirement at age 66 was clearly put by 74.72% of voters, while “yes” won in the consultation on the thirteenth payment per annum for retirees. Was. Vote with 58.24% support.

The Swiss government and parliament recommended a “no” vote in both consultations, which affected the Swiss pension system, known as AVS (abbreviation of “Old Age and Survivors Insurance” in French) and which is currently approximately Benefits 2.5 million people out of a population of 9. million.

With “yes” to the extra pay, the maximum income for retirees living alone would increase by the equivalent of about 2,500 euros per year to 33,300 euros, and for married couples of retirement age by 3,800 euros. to Rs 49,900. Euro.

The government estimates that this increase in pensions will mean an additional cost to the public treasury of approximately 4.3 billion euros per year, and with the progressive aging of the Swiss population the additional costs could exceed 5.2 billion euros per year in the future.

Promoters of this increase argued that it was necessary at a time of rising expenses for the average Swiss citizen in both health and food, housing and electricity due to inflation and increases in some taxes.

The consultation to delay the retirement age to 66 would not only establish this new retirement age from 2033, but would also tie it to average life expectancy. In this way, if this life expectancy increased in Switzerland, as has been happening in recent decades, the arrival of retirement would also be delayed, although with a maximum postponement of two months per year.

According to its defenders, a delay of 66 years would have reduced the cost of the pension system by 2,090 million euros, but the government and parliament voted against the idea of ​​linking retirement and life expectancy, considering it an overly mathematical formula. Harsh.

In 2022, the Swiss have already approved in another referendum equalizing the retirement age for women and men at 65, starting in 2028 (until then it was 64 for them), meaning There should be some allowance for funds already in place. ,

Switzerland introduced the AVS retirement system into its constitution almost a century ago, in 1925, although the first pensions for retirees in the Central European country did not arrive until 1948.

In addition to these two national consultations, various local referendums were held in which, inter alia, Geneva agreed to upgrade the Franco-Provençal language song “Se que l’anno” to a cantonal anthem, and Valais’ Alpine Canton opted for this. No new local constitution, retaining the 1907 constitution.