Historic victory for pensioners in financial matters of the state
In Switzerland, at an annual referendum, citizens voted for the initiative of trade unions to pay an additional pension; this year there will be 13 payments instead of 12. Trade unions announced the results of the vote “historic victory for pensioners.”
Swiss voters annually grant themselves an additional monthly pension — at a national referendum on the standard of living of older people.
The government has warned that increasing payments would be too expensive for them. But almost 60 percent of voters voted in favor. While 75 percent were against raising the retirement age from 65 to 66.
In Switzerland, the maximum monthly state pension is the equivalent of 2,550 euros. This amount, according to many, is not enough to live in the Alpine country.
The cost of living in the Swiss Confederation, especially in cities such as Zurich and Geneva, is among the highest in the world. Health insurance premiums, which are compulsory for everyone, are rising rapidly, and older people sometimes struggle to pay them.
It is especially difficult for women on maternity leave and immigrants hired decades ago to work in Swiss factories, restaurants or hospitals , it can be especially difficult to make ends meet.
“More and more people are working past 70, not out of choice, but out of necessity. Meanwhile, among the younger generation, the level of work-related stress and emotional burnout is growing,” — representatives of trade unions note. Their proposal to raise pensions was rejected by the Swiss government, parliament and business leaders, who argued it would not cover the budget.
The new election results contradict what came before. The fact is that voters in Switzerland often listen to their government's advice on money matters: a few years ago they actually gave up an extra week of vacation per year.
The Swiss association Avivo, which defends the rights of current and future pensioners, called the result a “historic victory for pensioners.”
“The move brings the state pension in line with the Swiss wage system, which is also paid in 13 installments, which means that employees receive double payment in November,” — explains the innovation by trade unions.
The system was originally designed to help people in the run-up to Christmas and the annual tax bill. As Swiss pensioners noted, pensions were also taxed. In another sign that the Swiss believe life should not be all about work, they overwhelmingly rejected raising the retirement age.
The government has repeatedly said those votes will come at a price. However, voters, looking at the booming Swiss economy, believe that their country can afford to increase the amount of the payment.