Swiss Parliament Approves Major Pension Reform in Key Vote

Background

Switzerland’s pension system has faced mounting pressure due to demographic changes, with the proportion of elderly people rising sharply in recent years. The need to secure the long-term sustainability of the three-pillar system has led to repeated political debates and previous reform attempts, some of which failed at the ballot box. Calls for adaptation have grown as average life expectancy increases and the working population shrinks relative to retirees.

What is happening now

On June 12, 2024, both chambers of the Swiss Parliament passed a comprehensive pension reform package after prolonged debate. The reform includes adjustments to the retirement age, increased flexibility for pension withdrawals, and a new funding model aimed at stabilizing the national social security fund. Parliamentarians highlighted the urgency due to financial forecasts indicating future deficits.

• The retirement age for women will gradually increase to 65, aligning with men.
• Flexible retirement options will be expanded for older workers.
• Increased contributions by both employees and employers are also part of the plan.

Impact on Switzerland

This reform will affect millions of workers and retirees in Switzerland. Trade unions have expressed concerns, particularly about the gradual rise in the women’s retirement age and increased contributions, arguing it could disproportionately impact the lower-income sector. Meanwhile, supporters say the measures are necessary to ensure stable pensions in the decades ahead. The reforms aim to reassure younger generations about the viability of future pensions while managing costs for the federal budget.

What happens next

The reform is expected to face a nationwide referendum, as several groups indicated they would launch an official challenge. If citizens support the package, the new measures could begin phased implementation in mid-2025. Authorities and pension fund operators are already preparing for logistical changes and public information campaigns. The national debate is set to intensify in the coming months as stakeholders present their respective arguments to the public.