The referendum to increase AHV pensions significantly redistributes funds from young to old, with older individuals benefiting at the expense of younger individuals. The longer Parliament delays funding for this increase, the more older generations will benefit and shift the burden onto younger ones.
In federal politics, there is a common practice of ignoring past statements and commitments. This is evident in the controversy surrounding the financing of the AHV pension increase approved by voters in March. Initially, the Left suggested no rush to finance the pension supplement, while citizens warned about the poor financial outlook of AHV and potential tax increases.
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 when and how to finance, with some suggesting a delay in implementing rapid financing proposals in favor of a more comprehensive reform that includes an increase in retirement age.
Despite these complexities in financing and redistribution, it is clear that additional pensions will start flowing from 2026 with substantial costs over twenty years. Younger generations will bear most of this burden, further exacerbating generational divide concerns.
There are fears that any delays in financing could shift even more burden onto younger individuals. Current funding proposals aim to improve AHV’s financial stability by 2026 but any delays could lead to significant financial shortfalls that would need addressing later on.
Overall, AHV faces financial challenges requiring careful planning and intergenerational equity consideration. The ongoing debate about financing this pension increase highlights need for balanced approaches that take into account interests across all generations while ensuring long-term sustainability of AHV system.
