[Switzerland] Voters say yes to pension payment increase

In Switzerland, voters in a nationwide referendum focusing on living standards for the elderly have said yes to an extra month's pension each year, BBC News reports.

The Swiss government had cautioned that the increased payments would prove too expensive but almost 60 per cent of voters said 'yes' in the March 3 poll. 

In a separate vote,75 per cent reportedly rejected raising the pension age from 65 to 66.

The maximum monthly state pension in Switzerland is €2,550 (£2,180), a rate thought by many to be too low to live on in the notoriously pricey country.

The Swiss cost of living is among the highest in the world, particularly in cities such as Zurich and Geneva. The country’s obligatory health insurance premiums have been climbing fast with older people sometimes struggling to pay them.

Women - who may have taken work breaks for family or caregiving responsibilities - and immigrants recruited in previous decades to work in Swiss factories, restaurants, or hospitals, may reportedly find it particularly challenging to make ends meet.

An increasing number of people are working into their 70s from sheer necessity. While among the younger generation, work-related stress and burnout rates are on the rise.

The proposal to increase pensions came from trade unions. It was opposed by the Swiss government, parliament and business leaders, arguing it was unaffordable.

Voters in Switzerland often follow government guidance about money matters and actually rejected an extra week's annual holiday a few years ago.

On this occasion, however, they reportedly used the power that Switzerland's system of direct democracy gives them to vote themselves an extra month's pension each year.

The initiative secured a required double majority: gaining both the popular vote and majorities in most of the country's 26 cantons.

Avivo - a Swiss association that defends the rights of current and future pensioners - reportedly called the outcome a "historic victory for retirees".

The yes vote brings the state pension into line with Switzerland's salary system, which is also paid in 13 instalments, meaning workers get a double payment in November.

The system was originally designed to help people manage Christmas and the country’s annual tax bill. Swiss retirees pointed out that pensions are taxed too and Christmas fun doesn’t stop at 65.

Source: BBC News

(Link via original reporting)

In Switzerland, voters in a nationwide referendum focusing on living standards for the elderly have said yes to an extra month's pension each year, BBC News reports.

The Swiss government had cautioned that the increased payments would prove too expensive but almost 60 per cent of voters said 'yes' in the March 3 poll. 

In a separate vote,75 per cent reportedly rejected raising the pension age from 65 to 66.

The maximum monthly state pension in Switzerland is €2,550 (£2,180), a rate thought by many to be too low to live on in the notoriously pricey country.

The Swiss cost of living is among the highest in the world, particularly in cities such as Zurich and Geneva. The country’s obligatory health insurance premiums have been climbing fast with older people sometimes struggling to pay them.

Women - who may have taken work breaks for family or caregiving responsibilities - and immigrants recruited in previous decades to work in Swiss factories, restaurants, or hospitals, may reportedly find it particularly challenging to make ends meet.

An increasing number of people are working into their 70s from sheer necessity. While among the younger generation, work-related stress and burnout rates are on the rise.

The proposal to increase pensions came from trade unions. It was opposed by the Swiss government, parliament and business leaders, arguing it was unaffordable.

Voters in Switzerland often follow government guidance about money matters and actually rejected an extra week's annual holiday a few years ago.

On this occasion, however, they reportedly used the power that Switzerland's system of direct democracy gives them to vote themselves an extra month's pension each year.

The initiative secured a required double majority: gaining both the popular vote and majorities in most of the country's 26 cantons.

Avivo - a Swiss association that defends the rights of current and future pensioners - reportedly called the outcome a "historic victory for retirees".

The yes vote brings the state pension into line with Switzerland's salary system, which is also paid in 13 instalments, meaning workers get a double payment in November.

The system was originally designed to help people manage Christmas and the country’s annual tax bill. Swiss retirees pointed out that pensions are taxed too and Christmas fun doesn’t stop at 65.

Source: BBC News

(Link via original reporting)