People in Switzerland voted in favour of giving themselves an extra month’s pension per year, despite the government warning a similar move would be too expensive to afford.
In a referendum held in the central European country on Sunday, the majority of voters backed this proposal amid increasing concerns about the elderly’s living standards.
The proposal was backed by both popular vote, with nearly 60 percent of voters supporting it, and majorities in most of the 26 cantons making up Switzerland.
The referendum also included a question on raising the retirement age from 65 to 66. The proposal was overwhelmingly rejected.
This vote brings into line the pension with the salary system in the country, paid in 13 instalments – including a double payment in November, aimed at supporting workers ahead of the Christmas festivities and the yearly tax bill.
While retirees in Switzerland have so far received their pension in 12 instalments per year, many have argued pensions are being taxed too and the elderly celebrate the winter holidays just like workers.
The clear support for a 13th payment per year to retirees came as the maximum state pension, which amounts to £2,180 (€2,550) a month, is being deemed by many not enough to live in Switzerland – particularly in Zurich and Geneva, where the cost of living is among the highest in the world.
Swiss residents face not just monthly bills and everyday expenses but also health insurance premiums which, while they are mandatory, have been rising fast.
To make ends meet, an increasing number of people are working well into their 70s, despite the retirement age being 65.
Many among the younger generations struggling with their wages are, on the other hand, experiencing burnout and stress related to their workplace.
The proposal to increase the pension came from trade unions. It was opposed by business leaders as well as the Swiss government and parliament, all arguing it is not an affordable measure.
Avivo, an established Swiss organisation defending the rights of both current pensioners and future retirees, hailed the results of the referendum as a “historic victory”.
Not every proposal seemingly granting benefits to workers or pensioners has been backed by voters in recent years.
In 2012, Swiss voters turned down in a referendum an increasing statutory holiday entitlement from the current four weeks to six and the re-introduction of fixed book prices.
