The recent referendum to increase AHV pensions has sparked a debate about the redistribution of funds from young to old. Older individuals will benefit significantly at the expense of younger generations, with longer delays in funding exacerbating this divide.
In federal politics, there is a common practice of disregarding past statements and commitments, as seen in the controversy surrounding the financing of the AHV pension increase. While the Left initially suggested a slower pace for financing, citizens warned about the potential financial risks and tax increases.
Now, three weeks after the vote, the Federal Council has presented financing options that focus on increasing wage deductions and potentially raising VAT. However, debates within the Social Commission of the National Council are ongoing about whether to implement these proposals quickly or delay them in favor of a more comprehensive reform that includes an increase in retirement age.
Despite these complexities, it is clear that additional pensions will begin flowing from 2026, with substantial costs over the first twenty years. The burden of financing these pensions will primarily fall on younger generations, further exacerbating generational tensions.
There are concerns about potential delays in financing that could shift even more of the burden onto younger individuals. The current funding proposals aim to improve AHV financial stability by 2026; however, any delays could result in significant financial shortfalls that would need to be addressed in future years.
Overall, addressing AHV’s financial challenges requires careful planning and consideration of intergenerational equity. The ongoing debate about financing this pension increase highlights the need for a balanced approach that takes into account all generations’ interests and ensures long-term sustainability of AHV system.