Switzerland. Initiative to overhaul mandatory occupational pensions launched

Pension benefits

In a separate move, a people’s initiative has been launched to overhaul the mandatory occupational pension scheme.

The campaigners, including mainly rightwing and centre-right politicians, want to introduce a flexible minimum interest rate on accumulated pension capital, scrapping the current rate fixed at 6.8%.

The aim is to adapt pension benefits and the retirement age to general life expectancy in a bid to create a “sustainable and fair system”, according to the initiative committee.

It has 18 months to collect the necessary signatures to force a nationwide vote, following the publication of the initiative text by the Federal Chancellery.

The mandatory occupational pension scheme is part of Switzerland’s three-tier social security system, but experts have warned that the growing number of older people is putting the onus on the young generation to finance pensions.

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