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Pension provision is at the top of the Swiss population’s concern barometer. As life expectancy increases, significant funding gaps and imbalances in pension funds will emerge in the coming years.
The social partners and political parties want to counter this with all kinds of improvement proposals. Voters will have to vote on three pension proposals in the coming year alone. This concerns the reform of the occupational pension scheme (BVG), a popular initiative of the trade unions for a 13th AHV pension and the pension initiative of the Young Liberals for an automatic adjustment of the retirement age to life expectancy.
Divided opinions on the PK reform
Opinions on these social policy initiatives are divided, according to the latest research by Groupe Mutuel in collaboration with the opinion research institute MIS Trend. If the Swiss people had voted this summer on the referendum against the reform of the second pillar, the yes and no votes would have been almost evenly divided.
30 percent of respondents were in favor of the referendum, rejecting the reform adopted after heavy negotiations in the federal councils. However, with 29 percent, almost the same number were prepared to reject the referendum initiated by the SP and the unions.
Many are still undecided
The reform package includes a reduction in the mandatory conversion rate, combined with pension supplements for the transition generation, as well as a lower entry threshold and smoothed premium rates at older working ages.
What is particularly striking about the research results is the high number of indecisive people. 41 percent of respondents have not yet formed an opinion on this important issue. One thing is clear: there is still a lot of educational work to be done before the voting date.
62 percent for 13th AHV pension
The survey, conducted among 1,400 people, provided clearer results for other retirement planning initiatives. The initiative for a 13th AHV pension, submitted by the Swiss Federation of Trade Unions, has been well received by the population. 62 percent of respondents would agree with the request entitled ‘For a better life in old age’. 26 percent are against it. The annual supplement of one-twelfth of the annual pension for people of retirement age is not intended to reduce the supplementary benefits, nor to lose the right to them.
A different picture emerges from the Young Liberals’ pension initiative. 56 percent of respondents reject the proposal to increase the retirement age to 66 and then link it to life expectancy. 33 percent would accept the initiative.
“Much is at stake”
For Thomas Boyer, CEO of Groupe Mutuel, these results show that the upcoming votes have not yet been decided and that the need for information and explanations is great: “This is not surprising because the population knows that a lot is at stake.”
This article first appeared in the Handelszeitung. You can find more exciting articles at www.handelszeitung.ch.
This article first appeared in the Handelszeitung. You can find more exciting articles at www.handelszeitung.ch.
The three-pillar pension system – often highly praised abroad – is generally regarded as reliable by the Swiss population. In this model, the state AHV based on the pay-as-you-go system (first pillar), the occupational pension provision based on the capital coverage principle (second pillar) and individual savings (third pillar) complement each other.
According to Groupe Mutuel’s research, 63 percent of respondents have high or sufficient confidence in the AHV. Confidence in company pension provision is slightly higher at 67 percent. When it comes to reliability, personal savings in the third pillar received the highest approval ratings at 79 percent.
However, it is important to take into account that the first and second pillars form the backbone of the Swiss pension system. These two pillars should enable retirees to receive a pension of approximately 60 percent of their last earned income.
Pensions remain an ongoing problem
It can already be estimated that raising the retirement age will remain an ongoing problem in the future. About two-thirds of OECD countries already link retirement age to life expectancy. This development is particularly advanced in the Netherlands and the Scandinavian countries.
The idea of a general increase in the retirement age is also slowly but surely starting to gain a foothold in Switzerland. This is a response to ongoing demographic changes. Since Groupe Mutuel first conducted the annual survey in 2020, there has been a marked change. The number of people who reject such an increase fell from 49 to 34 percent this year.
Approval for the reduction of the conversion rate in the mandatory part of occupational pensions also increased slightly from 24 to 27 percent in the same period. The proposal for a uniform premium percentage for all age groups also seems convincing. This correction is even finding a growing number of supporters among people about to retire.
Source:Blick
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