Women's retirement age in Switzerland to be raised from 2025
The Swiss government has confirmed that the higher retirement age for women - voted for at a referendum in September 2022 - will come into force in 2025. The rise in Swiss taxes that was also agreed upon as part of the vote will be implemented by 2024.
AHV and pension reform in Switzerland from 2025
At a press conference, the Federal Council said it had agreed on a timeline for reforming the AHV and the pension system in Switzerland. The highly controversial plan, which was only supported by 50,6 percent of Swiss citizens, is designed to guarantee the finances of pension funds in the years to come, as more of the population retires and fewer people start work.
From 2025, the government will begin to raise the retirement age for women to equal that of men at 65 years old. The change will be made gradually in four steps, starting with women born in 1961. By 2028, the retirement age will be 65 for everyone in Switzerland. Women born between 1961 and 1969 will receive financial compensation for the change in the form of a pension supplement.
Tax rates in Switzerland to be increased to pay for pensions
In addition, a new rise in value-added tax will go into effect from January 1, 2024, with VAT rates increasing from 7,7 to 8,1 percent. This policy, again agreed upon via referendum, is designed to pay for future increases in the cost of pensions.
The Federal Council confirmed that a final consultation on the plans is now underway, with all final details set to be confirmed by March 24, 2023. For more information about the change, and to see how the reforms may affect you, check out the official press release (in German).
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