Faced with an aging population and ever-increasing costs of living, Switzerland has held a referendum that could change the lives of retirees.
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According to preliminary estimates from public broadcaster SRF, Swiss citizens voted in a referendum on Sunday to increase pension payments.
Despite government and business warnings, the increase is prohibitive.
The referendum also included a separate proposal to raise the retirement age from 65 to 66, which is likely to be soundly rejected.
Polls had shown that more than 60% of voters would reject the increase, which also aimed to “flexibly” link the retirement age to life expectancy.
The outcome of the vote on increasing pension payments was unclear, although initial results published by SFR show that 58% supported the introduction of an additional 13th monthly pension payment per year.
Only 42% opposed it, suggesting a stronger victory than the polls suggested.
The approval of a majority of the 26 Swiss cantons is still required for the measure promoted by the Swiss Trade Union Confederation to be passed.
Critics of the pension increase claim that it would be costly for the state and could lead to tax increases, particularly for the younger, working population.
Swiss voters have so far been reluctant to support measures that were not considered financially sensible.
Monthly social security contributions in Switzerland can rise to 2,450 Swiss francs (2,553 euros) for individuals and 3,675 francs (3,830 euros) for married couples.
One reason for the choice was concern about the cost of living, with Switzerland consistently ranked as one of the most expensive countries in the world.
On average, a kilo of chicken costs around 25 euros and a loaf of bread costs more than 3.20 euros, according to the cost of living tracker Numbeo.
Voters opposed to raising the retirement age claim that older people already have trouble finding work and that raising it may make the situation worse.
Swiss citizens have repeatedly rejected initiatives to increase the retirement age, which has remained unchanged since state pensions were introduced in 1948.
Life expectancy in Switzerland is currently one of the highest in the world.
According to the Federal Statistical Office, a Swiss man born in 2022 can expect a life expectancy of 81.6 years, while for women it is 85.4 years.