For the first time since the establishment of referendums in Switzerland 130 years ago, a leftist union has successfully passed its initiative in this traditionally conservative country. The Swiss newspaper Basler Zeitung summarized the outcome as "a victory for the poor over the rich." The issue particularly concerns Swiss retirees in one of the world's most expensive countries. A notable 58.2% of voters and more than half of the 26 cantons voted in favor of a 13th pension.

The initiative, "For a Better Life in Old Age," aims to provide retirees with an additional annual pension, akin to the 13th salary received by many workers in Switzerland and other European countries. Following the announcement of the results, Elisabeth Böhm-Schneider, the Federal Minister of the Interior responsible for Labor and Social Insurance in Switzerland, addressed the press: “2.5 million women, men, and retirees will receive an additional monthly pension starting in 2026. The old-age insurance system is our most significant social insurance. This vote has once again shown our citizens' commitment to the solidarity embodied in the pension system for over 65 years. This role is crucial for our society in general, and for each of our elderly citizens. The Federal Council will now take the necessary measures to ensure that the initiative can be implemented within the timeframe.”

The Swiss government had warned that the increase would cost over 4 billion Swiss francs per year, potentially leading to tax hikes and threatening the stability of the social security system. This makes the result even more impressive. It's great news for unions and progressive parties that supported an initiative that might not be fully understood by other citizens and politicians, considering Swiss pensions are among the highest in Europe. The highest pension is 2,450 Swiss francs for singles and 3,675 for married couples. However, rent for a simple three-room apartment approaches 3,000 euros in major cities, and buying a property is unattainable, while a simple coffee costs 5 euros. This initiative has a precedent in Liechtenstein, which also uses the Swiss franc and has implemented a similar system for years.

Adding to the referendum's impact was the rejection of another question posed to voters: gradually increasing the retirement age to 66 and linking it to life expectancy. The initiative, led by the Young Liberals, was rejected by 74.7% of the voters. The increase would have saved about 2 billion Swiss francs by 2030, according to the Federal Office of Social Insurance, and would have secured pension funding at least until 2033.

Barbara Zimmermann, representative of the Swiss Employers' Association, noted, “Our social insurance systems are under pressure due to demographic developments. We are aging and living healthier lives, which is a positive development. However, this also means fewer workers must support more retirees. That's why we need to act, and increasing the retirement age is one way to do it. The alternative would be cutting benefits or raising contributions, which nobody wants. Given the increase in life expectancy, working longer is a good solution.”

However, Adrian Wüthrich, head of Travail.Suisse, Switzerland's largest workers' union association, had a compelling counterargument. “Switzerland can still afford to retire at 65 financially. We work hard in Switzerland, so I don’t see a reason for debate.”