The recent referendum to increase AHV pensions has sparked a heated debate about the redistribution of resources from young to old. The longer Parliament delays funding for this increase, the greater the benefit for older people at the expense of younger individuals.
In federal politics, it is common practice to disregard past statements and commitments, as exemplified by the controversy surrounding the financing of the AHV pension increase approved by the people in March. Initially, the Left suggested no rush to finance the pension supplement, while citizens warned about the poor financial outlook of the AHV and potential tax increases.
Now, just three weeks after the vote, the Federal Council presented financing options that focus on increasing wage deductions and potentially raising VAT. There are debates within the Social Commission of the National Council regarding the timing and method of financing, with some suggesting a delay in implementing rapid financing in favor of a more comprehensive reform that includes an increase in retirement age.
Despite these complexities and concerns about potential delays in financing, it is clear that additional pensions will start flowing from 2026, with estimates suggesting a substantial cost over the first twenty years. The burden of financing these pensions will primarily fall on younger generations, further exacerbating generational divides.
The ongoing debate about financing this pension increase underscores the need for careful planning and consideration of intergenerational equity. It highlights how important it is to take into account all generations’ interests and ensure long-term sustainability of AHV systems.
The AHV faces significant financial challenges that require a balanced approach that considers both short-term needs and long-term sustainability. It is crucial that policymakers find creative solutions that ensure fairness for all while maintaining financial stability for future generations.