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🤣 Good luck paying for it.
The title is misleading. Switzerland pension system is complex and divided by redistribution and capitalization.
The vote of today concerns the pension by redistribution – the first pillar. Employers and employees are contributing for this part of the system as a percentage of the salary. The maximal pension is 2500 Swiss francs (2’829 USD). People will receive a rise equivalent to 1/12 of the yearly pension.
The pension by capitalization – second pillar – follow the same system, with employers and employees contributing for it. But, it is not concern by the vote.
First and second pillar are mandatory by law. In Switzerland, you have a third pillar, which isn’t mandatory. It’s mostly investment, like life insurance.
Let’s #wetoo !!!
As someone from the USA, I am curious how would this work? The bill mandates that payments go out, but if it is not tied to a specific source of income to compensate, and some hard year happens (maybe this upcoming one) and there are insufficient funds, what happens then?
Actually, the pension by redistribution – which is concern by the vote – has $56.57 billions in reserve. This money doesn’t sleep. Switzerland is using it has an investment found.
But, the Confederation has already thought about how to finance. There are two main propositions. The first is employers will have to contribute more. The second is that employers and employees will contribute as well as a higher VAT.
I am still blown away by the part where the legislatures give a single damn about what the people want:-).
Plus, how 60% actually manages somehow to win:-P.
The legislature didn’t, the unions together with the leftist political minority pushed for this after the centre and right parties dragged their feet and did nothing for decades.
They must care about it. The initiative states that it must be implemented no later than January 1, 2026.
We have a similar trend as in the US with retired being poorer each year. Also, the general population is poorer. Ad to that the Confederation gave billions to falling banks and to the economy during COVID without giving a f to the population. People now want they share.
