Switzerland, where an aging population faces an ever-increasing cost of living, is holding a referendum on Sunday on two initiatives that will change the lives of retirees in different ways.

The Swiss are called to vote on Sunday to decide on two important proposals for pensioners: the payment of the 13th pension and raising the retirement age, AFP and Agerpres reported.

Opinion polls show that a proposal to gradually raise the retirement age from 65 to 66 looks doomed to failure. Instead, a second proposal aimed at providing a 13th pension each year, similar to the 13th salary that many active people in Switzerland and other European countries receive, has a chance of being accepted.

According to a recent poll conducted by gfs.bern for the public TV channel SSR, 53% of respondents said they supported the initiative, while 43% were against it.

What is the average pension in Switzerland?

Currently, the average state social security pension in Switzerland is 2,450 francs (€2,570) for a single person and 3,675 francs for a married couple.

These are insufficient amounts for a country that is considered one of the most expensive in the world.

For example, the rent for a three-room apartment in one of the cities of Switzerland is at least 3,000 francs (3,150 euros), and coffee costs more than five francs.

“Like everywhere else, there is a crisis of purchasing power in Switzerland. The standard of living of pensioners has declined,” explained Pierre-Yves Maillard, president of the Swiss Confederation of Trade Unions (SGB), which is in favor of a favorable show of will in Sunday’s referendum and hopes the initiative will win.

The government and parliament oppose it

Left-wing parties support the initiative, but they are strongly opposed by right-wing and center-right parties. The Swiss government and parliament are also opposed.

The government says the proposed increase would cost more than four billion francs a year, warning it would require higher taxes and could threaten the financial stability of the social security system.

The federal government also says the proposed change will mean more money for all retirees, regardless of their financial situation.

Voters will also vote on a proposal by the Liberal Party’s youth organization to gradually raise the retirement age from 65 to 66 over the next decade to ensure sustainability of pension funding.

Raising the retirement age is doomed to failure

But this initiative does not seem successful, considering that the latest polls show that only 35% of respondents support such a measure, and 63% are against it.

The vote comes less than two weeks after Swiss voters narrowly decided to raise the retirement age for women from 64 to 65, to the same level as for men.

On Sunday, polling stations will be open for just a few hours before closing at midday (10:00 GMT), with the first results expected in the afternoon.

Referendums are commonplace in the Swiss system of direct democracy, and several such plebiscites are held each year.

For the people’s initiative to be accepted, it needs the support of the majority of voters, as well as more than half of Switzerland’s 26 cantons.