SHOW / EPISODE

2. The Swiss Pillar 1 pension (AHV) 13. Payment debate. An alternate point of view. How what would be a total non-starter in any other country becomes the law of the land in Switzerland.

35m | Aug 29, 2024

We look at how the 13. Pension payment for the Swiss pillar 1 (AHV) came about. Taking a look at one of the sacred pillars of Swiss society. This was a result of an initiative by the Association of Swiss Unions, an otherwise relatively quiet association. They put a pay rise for pensioners on the national agenda, pushed and got a referendum, they won, as the people voted in favour. Swiss Parliament did not want this. Most Swiss politicians did not – apparently - want this discussed, let alone on the ballot. The people did however. They voted and it was passed. The Swiss government is now required, forced in fact, to implement this, find a way to pay for it and make it work.

In no other western country would this be possible. Once again, Switzerlands direct democracy makes stuff possible. This would be a total Non-Starter in Britain, Germany, France and pretty much anywhere else.

We now come to the crunch: How is the 4.7 Billion CHF per annum going to be paid for? 

As usual when it involves money, it gets complicated. We look at the alternatives. With a passing look at Switzerlands secret sovereign wealth fund. 

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