Voters took advantage of the Swiss system of direct democracy.
Yesterday, Sunday, the Swiss voted in favor of raising pensions. 58 percent of the voters supported increasing pensions with one month’s extra pension each year.
Concerns about pensioners’ livelihoods and support for a stronger support network overcame concerns about the economic effects of the reform. The support was stronger than had been expected based on the polls.
At the same time, the Swiss rejected the raising of the retirement age from 65 to 66 in a referendum. This was opposed by 75 percent of the voters, says Britannian the BBC.
In Switzerland, the old-age pension is a minimum of just under 1,280 euros and a maximum of around 2,560 euros.
Many people think that pensions are not enough to live in Switzerland. The cost of living in Switzerland’s big cities is high. At the end of the year, the Economist Intelligence Unit estimates that Zurich is the most expensive city in the world – alongside Singapore.
Direct democracy made it possible
The initiative to raise pensions came from the trade unions, and it was also supported by the left-wing parties. The government, parliament and business opposed the idea because they consider it harmful to the economy.
The BBC points out that the Swiss often meet to listen to the government’s economic views. In recent decades, they have rejected in referendums, for example, the shortening of the working week and new days off.
This time, however, voters took advantage of the Swiss system of direct democracy. It means that citizens can influence many things by voting. For example, legislative initiatives made by Parliament can be submitted to a referendum with 50,000 signatures.
The initiative received the double majority required for its passage. In addition to the referendum, a majority of Switzerland’s 26 cantons had to support it.
The reform brings pensioners on the same page as employees. Employees in Switzerland receive double their salary in November, which means they earn like 13 months’ salary in a year. The system was put into use at the time to support people in paying taxes and during Christmas.
The payment of additional pensions should take effect in 2026. It is unclear how the increases will be financed. Opponents say the change will lead to tax increases or cuts.
Source: Reuters