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The retirement age for men is now 65, the retirement age for women is – still – 64. Now that the AHV reform has been approved at the ballot box in 2022, the retirement age for women will also be gradually increased to 65 from 2025 and until 2028.
The higher retirement age for women, higher wage deductions and the VAT increase at the beginning of 2024 should keep the AHV financially balanced until approximately 2030. For the period thereafter, Parliament has already commissioned a new reform proposal from the Federal Council. It should be available by the end of 2026.
The AHV works according to the pay-as-you-go principle: what employees pay in premiums is paid out to retirees as a pension. But rising life expectancy and the growing number of retirees will likely put the AHV in financial trouble, as fewer people with jobs will have to finance more retirees.
Link the retirement age to life expectancy
The pension initiative requires a further increase in the retirement age to safeguard AHV pensions. In a first step, after a yes vote for men and women, this should increase gradually to 66 years in 2033, from January 1 of the fourth year after adoption.
According to this principle, the retirement age should be linked to the average life expectancy of 65-year-olds. Anyone retiring must know five years in advance when he or she will reach retirement age. This should enable planning certainty. Adjustments of a maximum of two months are permitted annually.
The initiators expect that the retirement age will increase by approximately one month per year from 2033 and will be around 67 years and 7 months in 2050. However, the retirement age does not increase in parallel with life expectancy, but by a factor of 0.8. For example, if life expectancy increases by two years in 2050, the retirement age would only increase by 19 months.
Supporters: Without reforms there is a risk that AHV will go bankrupt
Linking the retirement age to life expectancy is the only sustainable solution for pension provision, writes the pension initiative association. The financing and long-term security of the AHV are at risk because the population is getting older. Without reform of the AHV, the pension provision would go bankrupt. There is a risk of a tax deficit of more than 10 billion francs in 2050.
The initiators want to enable industry solutions for early retirement, for example for physically demanding jobs. And because there are more skilled workers available in the Swiss labor market, the initiative could also slow immigration, they say.
The pension initiative was launched by the Young Liberals. According to the website, the FDP Switzerland, the Junge SVP, the trade association and the employers’ association are among others present.
Opponent: Automatism is too rigid
The Federal Council and Parliament reject the initiative. The Federal Council claims that an automatic mechanism enshrined in the constitution that links pensions and life expectancy is too rigid. When determining the retirement age, the development of the economy and the labor market, as well as the health of the people in the country, should also be taken into account. There must be a political discussion possible about the retirement age.
In the eyes of the Federal Council, it is also not appropriate to raise the retirement age again before the retirement age for women has already been raised. According to the Federal Council, the next AHV reform for the period from 2030 has already been implemented.
In the No committee, representatives of the SVP, SP, Center Party, Greens, GLP and trade unions are against the initiative. (SDA)
Source:Blick
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