Young Liberals launch referendum campaign for higher retirement age
Published: Thursday, Jan 18th 2024, 15:40
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According to the Young Liberals, the AHV is on the brink of collapse. The pension initiative aims to counteract this by initially raising the retirement age to 66 and then linking it to life expectancy. The solution is "fair for all generations", according to the initiative committee.
On Thursday, the Young Liberals launched their campaign for the pension initiative. The people and cantons will vote on it on March 3.
According to the text of the popular initiative "For secure and sustainable old-age provision (pension initiative)", the retirement age for women and men is to be gradually increased to 66 by 2033. After that, the retirement age should be linked to average life expectancy.
According to current federal forecasts on the future development of life expectancy, the retirement age is likely to increase by around one month per year from 2034. In 2050, the retirement age is likely to be around 67 years and 7 months.
There is no alternative to reform
Matthias Müller, President of the Young Liberals, spoke to the media in Bern of a "prestige project" for his party. The "mini-AHV reform" with the increase in the retirement age for women last year did have positive effects. However, these would fizzle out at the beginning of the next decade.
"A further reform is unavoidable if the AHV is not to be dramatically in the red," said Müller. The pension initiative is the only way to secure the social security system in the long term.
A gradual increase in the retirement age to 66 and then a link to life expectancy would be a simple solution, according to Müller. If nothing is done, the AHV is threatened with a deficit in the billions. The federal government estimates a contribution deficit of CHF 10.5 billion by 2050. There would also be a gap of 80 billion francs in the AHV equalization fund.
"We are taking note of the sober figures and taking action," said Müller. The pension initiative would halve the contribution deficit to around CHF 5 billion. Politicians have so far failed to ensure balanced and sustainable AHV funding. "In the end, we young people have to pick up the tab."
"We are not inventing anything new"
Müller stated that the referendum would restructure the first pillar without the need for pension cuts, additional taxes or higher wage contributions. "We are not taking money away from people." If the funding gap were to be filled with pension cuts, pensioners would have 12 percent less AHV contributions available in 2050.
The initiative committee also referred to the positive side effects of the proposal. For example, immigration could be reduced because the domestic workforce would be active for longer. In addition, longer working hours would increase income tax revenue for the federal government, cantons and municipalities.
Patrick Eugster, President of the Pension Initiative Association, also referred to the situation abroad. In many countries, the retirement age has been raised in recent years and in some cases also linked to life expectancy. "We are not inventing anything new."
The Young Finns are also in favor of exceptions because not everyone can work longer. Exceptions for certain professions are supported, said Daniel Mitric, Vice President of the Young Liberals.
On the defensive
In general, the pension initiative is in a difficult position a good six weeks before the vote on Sunday. Polls are currently predicting a 'no' vote of over 60 percent. According to this, only the FDP base supports the cause of their young party. Voters from the SP, Greens, SVP and Center Party are currently clearly against the initiative, while the GLP base is divided.
The Young Liberals do not want to be put off by this. "We were pleased to note that several cantonal parties have sided with us," said Müller, highlighting the two largest SVP cantonal sections in Zurich and Bern in particular.
At the same time, he acknowledged that the efforts to draw attention to the initiative will be enormous. According to the committee, it has a campaign budget of almost 900,000 francs at its disposal. "It's worth fighting for," said Eugster.
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