The Swiss, whose aging population faces rising living costs, voted on Sunday for a 13th pension, according to near-final results of consultations, Agence France-Presse reported. On the other hand, the initiative on the retirement age of 66 was rejected by 74.7% of the referendum participants, La Libre reports, News.ro reports.

According to these preliminary results, the 13th pension proposal won 58.2% of the national vote, which also shows that it won a majority in more than half of Switzerland’s 26 cantons, a requirement for its passage.

As Reuters points out, this measure, supported by the Confederation of Swiss Trade Unions and center-left parties, needs the approval of a majority of the 26 Swiss cantons. The proposal has been rejected by the government, the business community and the currently right-leaning parliament as financially inefficient. In the past, Swiss voters have been wary of supporting measures seen as a threat to the business environment.

On the other hand, the initiative to raise the retirement age to 66, submitted by the Swiss Liberal-Radical Youth (PLR) and proposed in the same referendum, was rejected by 74.7% of the votes.

The vote on pensions differs from referendums in recent decades, in which Switzerland strongly rejected proposals to shorten the working week or give people more holidays. Concerns about the cost of living are widespread. According to a study published in November by the Economist Intelligence Unit, Zurich, Switzerland’s largest conurbation, shares the record with Singapore as the world’s most expensive city, Reuters reports.

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.