Swiss voters have approved the amendment to the AHV law. The increase in value-added tax to finance the AHV was also approved by a majority. This means that a number of things will be changing.

Since the introduction of the AHV in 1948, the social security system has undergone ten revisions and partial revisions. The last important revision was in 1997: The tenth AHV revision raised the women's pension age from 62 to 64. On September 25, 2022, the Swiss electorate voted with 50.6% in favor of the amendment to the AHV law and thus for a further increase in the women's pension age to 65. However, the Yes vote was very close. Also, the gender gap has never been so deep since the introduction of women's suffrage. The federal resolution on the additional financing of the AHV through an increase in value added tax from the current 7.7% to 8.1% was also approved with 55.1% yes votes.

Women's retirement age to be raised from 64 to 65

An important point in the new AHV legislation is the fact that it is now no longer the ordinary retirement age that is designated, but the so-called reference age. In future, the same reference age of 65 will apply to AHV and occupational pension schemes, with the increase in the women's pension age to 65 taking place in stages one year after the reform comes into force. See also "The measures at a glance".

Nine transition years receive compensation

Women in the nine transitional cohorts will receive a pension supplement to compensate for the longer working hours. Assuming the bill enters into force in 2024, these are the 1961 to 1969 cohorts. If these women do not retire early, they will receive the AHV supplement for life. The amount of the supplement varies between 12.50 and 160 francs per month, depending on income and year of birth. For average annual incomes up to 57,360 francs, the supplement is 160 francs; for wages between 57,361 and 71,700 francs, it is 100 francs; and for annual incomes of 71,701 francs or more, it is 50 francs. The pension supplement is additionally graduated according to the year of birth: Those born in 1961 receive 25% of the basic supplement, those born in 1962 receive 50%, those born in 1963 receive 75%, those born in 1964 and 1965 receive 100%, those born in 1966 receive 81%, those born in 1967 receive 63%, those born in 1968 receive 44%, and those born in1969 receive 25% of the basic supplement. Thus, those who earned less than 57,360 francs and were among the first women to reach the reference age of 65 will receive the highest percentage supplement to their AHV pension.

Retirement becomes more flexible

Those who belong to the nine transition cohorts can retire early at age 62. These women receive less severe pension reductions than men and younger women in the event of early retirement. For the remaining women and men, early retirement is now possible from age 63. Conversely, all of them can postpone drawing their pensions until they reach the age of 70. Partial early withdrawal and partial deferral of the pension are now possible. The Federal Council intends to set the reduction rates for early withdrawal and the surcharges for deferral in 2027.

Working longer should pay off

Those who work beyond the reference age should be able to supplement their old-age pension up to the maximum possible pension or plug gaps in contributions. Retirees with earned income should also be able to voluntarily waive the tax-free allowance (currently 16,800 francs per year or 1400 francs per month).

Waiting period for helplessness allowance is shortened

AHV recipients who require permanent assistance in everyday life already receive a helplessness allowance from the AHV that is independent of income and assets. With the AHV reform, the waiting period will be reduced from currently one year to six months.

Value added tax is raised

The second OASI 21 proposal that has been adopted is the increase in value-added tax. Thus, the standard rate will be increased by 0.4 percentage points to 8.1%. The reduced rate will be raised by 0.1 percentage points to 2.6% and the special rate for the hotel industry will also be increased by 0.1 percentage points to 3.8%.