This is what you need to know about the AHV vote: Higher pension? Want to work longer?

The trade unions’ popular initiative “for a better life in old age” calls for the introduction of a 13th AHV pension. If the answer is yes, a thirteenth monthly salary for seniors will be added to the previous twelve monthly pensions. For a full pension, this currently corresponds to a supplement of at least 1,225 francs to a maximum of 2,450 francs per year for private individuals. Married couples will also receive a maximum of 3,675 francs. Important: The additional benefits may not be reduced as a result.

The Young Liberals’ pension initiative wants to increase the retirement age. First, it should gradually increase from 65 to 66 years by 2033, and then be linked to life expectancy: for each additional month of life expectancy, it should increase by 0.8 months – to 67, 68 or more. Automatically.

This year, the federal government expects AHV expenditure of more than 50 billion francs. With a 13th AHV pension, the budget item would increase by a twelfth or 8.3 percent from 2026. Another 4.2 billion francs is needed for the AHV. As the baby boom generation is now retiring, approximately 5 billion additional francs would be needed by 2030.

There will be sufficient money in the AHV fund for this in the coming years, partly thanks to the higher retirement age for women and the higher VAT. Moreover, the federal government also pays more when expenses increase: it covers about a fifth of the costs.

Nevertheless, additional financing is needed in the medium term. The initiators deliberately leave open how this should be done. But there are countless ideas. For example, through higher wage percentages, which would amount to about 0.8 percentage points – 0.4 for both employers and employees. These could also be moved from the pension funds to the AHV. A higher VAT would also be possible, which would require an additional 1 percent. A financial transaction tax or an inheritance tax in favor of the AHV would also be conceivable. Or money from the national banks as soon as they make extraordinary profits again.

The Jungfreisinn pension initiative, on the other hand, costs nothing financially, apart from more working time. However, this would alleviate the financial burden on the AHV fund. In 2030, for example, with more than 1 billion francs.

The AHV is the real heart of our welfare state. This has to do with the financing mechanism. On the one hand, the AHV premiums, currently 8.7 percent, are partly paid by the employer and half by the employee. On the other hand, the AHV is levied on the entire salary: the millionaire pays significantly more than the low-income earner – but the pension for both is limited to a maximum of 2,450 francs per month. As a result, approximately 90 percent of AHV retirees receive more from the AHV than they ever paid into.

How social a 13th AHV pension would be depends on the way it is financed. For example, if this were done through wage rates, it would be social, as high earners massively pay more than low earners. A higher VAT would be less social, because it places a relatively greater burden on lower incomes.

No, there are already states that have a 13th or even 14th old age pension. The most obvious example for Switzerland is Liechtenstein. In the state, the bonus is officially called “Christmas Bonus” and is paid out in early December. The Christmas bonus was introduced in 1992 and started with an extra payment of 25 percent on top of the December pension. In 1994 this was increased to 50 percent and in 1998 to 100 percent of the December pension.

Some Swiss are also entitled to a 13th AHV pension from the neighboring country. “13 percent of the amounts paid out go to Switzerland,” the responsible authorities said.

Liechtenstein is not the only country that has a supplementary pension such as the one advocated by the initiative. In Austria and Portugal, retirees receive fourteen benefits, the trade union federation notes in a compilation. Italy also has 13 monthly pensions and an additional 14th monthly pension up to a legally established income limit – the “somma aggiuntiva”. The amount of this “additional amount” depends on the years in which the contributions were made.

Finally, in Denmark, poor retirees, who have little liquid savings, receive an income-related pension benefit once a year. “This is slightly higher than a monthly pension,” the newspaper says.

Working after 65? Yes, this already exists in many countries. Some countries already have a more or less automatic adjustment mechanism that links the retirement age directly to life expectancy. These include Bulgaria, Denmark, Estonia, Finland, Greece, Italy, the Netherlands, Portugal and Sweden, according to a report from the Federal Social Insurance Agency.

In Italy, for example, the retirement age has been increased from 60 to 67 since 2012. In the Netherlands, the retirement age was 66 years and seven months in 2022 and is now gradually increasing to 67 years. From 2026, the retirement age in Sweden will also be 67. And in Denmark, the retirement age is expected to be raised from the current 67 to 68 in 2030, and even to 69 in 2035.

But things don’t always go up, as the example of Portugal shows: from 2014 to 2022, the retirement age was raised from 66 years to 66 years and seven months, but lowered again last year by three months.

In addition to the unions, the SP and the Greens are also in favor of the 13th AHV pension. Their main argument: the supplementary pension strengthens the purchasing power of all seniors, especially in times of rising rents, health insurance premiums and general inflation. This is also to compensate for declining pension fund pensions, for which there is usually no adjustment to the cost of living.

The concern therefore extends far into the civilian camp. The FDP, Mitte and GLP reject the initiative. And the SVP is also campaigning against the issue. But the 13th AHV pension is especially popular among the SVP base. The canton parties of Geneva and the Jura decided on the yes slogan, the Lower Valais and the SVP of Ticino approved the vote.

According to recent studies, the initiative has a real chance with the electorate. According to the second SRG trend survey, 53 percent want to vote yes. However, for the initiative to be successful, it must also break through the ranks.

The Young Liberals’ pension initiative is encountering greater resistance. Trade unions and the left are strongly against it. But Mitte and GLP are also against it.

However, it is clear to the supporters: they do not want to secure the AHV through additional income, but rather through a higher retirement age. “The figures show that we are clearly entering a demographic storm with gigantic cost consequences,” says the young liberal president Matthias Müller (31) before a yes vote. In addition to the young party, the economic umbrella organization Economiesuisse, employers’ organization, trade association, insurance association and the parent party FDP and SVP are also committed to the cause.