Pension provision: Switzerland votes on 13th month pension

Switzerland is considered a rich country, but around 15 percent of pensioners live below the poverty line. An initiative wants to counteract this – with a 13th month pension. This, among other things, will be voted on today.

The waiting room is full at the Pro Senectute counseling center in Geneva. The organization advocates for the well-being and rights of older people in Switzerland. For people like Jose. He has been retired for three years and now wants to find out about additional help, he explains. “I’ve worked in Switzerland all my life, in insurance and in the real estate industry. But my small pension isn’t enough. That’s impossible in Geneva.”

According to official poverty statistics, 15 percent of Swiss pensioners live below the poverty line. In the canton of Geneva, this even applies to a quarter of people over 65, according to Joel Goldstein, director of “Pro Senectute Geneva”. “Rents in Geneva are extremely high. Added to this is inflation, increased health insurance contributions, energy and food prices. This has put many people in great difficulty.”

Unions demand 13th month pension

On the initiative of the Swiss Federation of Trade Unions, the country is now voting this Sunday: under the motto “For a better life in old age,” the referendum is about a 13th month pension. The so-called AHV pension – the “first pillar” of retirement provision in Switzerland and a type of basic pension of currently a maximum of 2,450 francs – would be increased by 8.3 percent in one fell swoop.

The Swiss government and parliament have recommended rejecting the popular initiative, as has the president of the economiesuisse business association, Christoph Mäder: “The union initiative is costing us billions. And that in turn reduces the purchasing power of all of us. This must be prevented.”

Surveys show a majority among supporters

Apart from the Social Democrats and the Greens, all parties are calling for a no vote in the referendum, especially the party with the highest number of voters, the SVP. Even if, as a pensioner, he “would like to have a 13th, why not 14th or 15th month’s pension,” the SVP veteran billionaire Christoph Blocher rumbled ironically.

But although it is not clear how the pension increase will be financed, a majority of Swiss people – according to surveys up to 59 percent – could vote for it. In Geneva, which is particularly affected by old-age poverty, even the SVP local branch has joined the yes camp, contrary to the national party line. According to surveys in Ticino, over 80 percent want to vote for the 13th month pension.

In traditionally liberal Switzerland, so much support for strengthening the welfare state is unusual. The actual plight of many older people is not the only explanation for the socio-political turnaround, said political scientist Martina Mousson on SRF. In addition, large amounts were allocated to the economy as part of the banking and Corona crises. “And the citizens of the country say, now it’s our turn.”

Brigitte, who is waiting for her consultation appointment at “Pro Senectute” in Geneva, sees it similarly. She is 77, has had a long working life as a server in cafés and restaurants and has already voted by postal vote – yes for the 13th month pension. “It’s important that the little people go to vote. So that we can treat ourselves to something. Anyone who has always worked has the right to benefit a little now and then.”

Increasing the retirement age probably has no chance

It is uncertain whether a majority in Switzerland will actually come together to support the pension increase. The latest polls indicate a close result. A second pension initiative, which will also be voted on this Sunday, is considered to have almost no chance. Demand: An increase not in the pension, but in the retirement age. According to surveys, over 60 percent of Swiss voters clearly say no to this.