“By 2033, the number of people of retirement age will have increased by 50% from 2.6 million to 3.9 million,” he said. “We have to accept unpleasant facts. If we want to maintain the pension level and stabilise the state pension scheme, we urgently need substantial additional financing. The only question is how this is done.”
The Swiss government has proposed reforms – for the fourth time in two decades – to amend legislation to remove a structural deficit in the state pension scheme. A previous pension reform plan presented by Berset was rejected by voters in September 2017.
“The problems of old-age pension remain unresolved following the September vote,” Berset told NZZ.
In March, the government presented the outlines of a new state pension reform plan, including raising VAT by 1.7% to fund it, and raising the retirement age for women from 64 to 65. The government, however, maintains that everyone should be able to choose flexible retirement between 62 and 70. People will nevertheless be encouraged to keep working beyond 65.
Berset says fixing a general retirement age will not solve the problem because companies will not employ older workers.
“Older workers continue to be disadvantaged. But it is true that, due to demographic changes and the shortage of skilled workers, they will be in greater demand in the future. Rigid fixation on a generally higher retirement age is the wrong approach. If we give the right incentives, more people will work longer voluntarily. The aim must be to raise the effective retirement age,” the minister told NZZ.
Berset is to submit a detailed proposal for consultation by lawmakers before the summer break.
What do you think Switzerland’s Alain Berset can bring to the Council of Europe?
The former interior minister is to become the first Swiss Secretary General of the Council of Europe – which issues should his five-year term focus on?
How is your country dealing with the return of stolen artifacts?
Western nations like Switzerland often have to deal with the process of recovering or returning looted artifacts which have been illegally imported. What’s the situation like in your country?
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Government proposes new pension reform guidelines
This content was published on
The Swiss government on Friday fixed the outlines of a new state pension reform plan, including raising the retirement age for women from 64 to 65.
This content was published on
A combination of several factors led to the rejection of a major reform of the old age pension scheme at the ballot box last September.
Switzerland drops in international pension ranking
This content was published on
The Swiss pension system has ranked eighth in an annual international study looking at the sustainability and efficiency of retirement schemes
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.