In Switzerland, where the population is aging and the cost of living continues to rise, a referendum has been held that could change the lives of pensioners.
Swiss citizens voted in favor of increasing pension payments in a referendum on Sunday, according to preliminary estimates from the country’s public broadcaster SRF.
Despite warnings from governments and businesses, this rise is out of reach.
The referendum also includes another proposal to raise the retirement age from 65 to 66, which is likely to be easily defeated.
Opinion polls showed more than 60% of voters would reject the increase, which also called for the retirement age to be “flexibly” fixed at life expectancy.
The outcome of the vote on increasing pension payments is unclear, but initial results published by the SFR show that 58% support introducing an additional 13 months of pension payments each year.
Only 42% opposed it, suggesting a stronger victory than polls suggest.
The bill, promoted by the Swiss Federation of Trade Unions, still needs support from a majority of Switzerland’s 26 cantons to pass.
Critics of raising pension benefits say it would be costly for states and could lead to higher taxes, especially for younger workers.
Swiss voters have traditionally been reluctant to support policies deemed fiscally unsound.
Monthly social security payments in Switzerland can rise to CHF 2,450 (EUR 2,553) for individuals and CHF 3,675 (EUR 3,830) for couples.
Switzerland consistently ranks as one of the most expensive countries in the world, and concerns about the cost of living were one of the factors driving the vote.
On average, a kilo of chicken costs around 25 euros and a loaf of bread costs more than 3.20 euros, according to the Cost of Living Tracker. Numbeo.
Voters who oppose raising the retirement age argue that older people already have difficulty finding work, and raising it could make the situation worse.
Swiss citizens have repeatedly rejected efforts to raise the retirement age, which has remained unchanged since the introduction of the national pension in 1948.
Life expectancy in Switzerland is currently one of the highest in the world.
According to the Swiss Federal Statistical Office, the average life expectancy for Swiss men born in 2022 is 81.6 years, and for women 85.4 years.