Federal Council plans pension reform in Switzerland

by / ⠀News / October 28, 2024
Federal Council plans pension reform in Switzerland

The Federal Council has announced plans to end lifelong widows’ pensions in Switzerland. Under the new legislation, widows and widowers will receive a pension only until the youngest child reaches the age of 25. Currently, widows receive a pension for life, while payments for widowers stop when the youngest child turns 18.

The change aims to address the gender discrimination in the current system, which favors women. The European Court of Human Rights brought the discrimination to political attention in October 2022. Others have argued that the current system no longer reflects modern society.

In 1960, women made up 34% of the workforce. By 2023, the figure was 46%, nearing gender parity.

Federal Council addresses pension equity

The planned changes will allow widows over 55 to retain an entitlement to lifetime payments. The new law will come into effect in 2026 and is forecast to save around CHF 350 million by 2030. Social Affairs Minister Elisabeth Baume-Schneider and her colleagues support the overhaul, aiming to adapt the widow’s pension system to contemporary social dynamics.

The shift has sparked considerable debate. Some readers fear it may lead to a less supportive system, while others view it as a necessary step to align pensions with societal changes. Reader “Grumeflatt68” argued that the new policy reflects evolving workforce dynamics where women actively partake in professional careers.

“It used to make sense when wives were housewives, but today, many women are professionally active. The widow’s pension, in this context, can deter women from re-entering the workforce.”

As the debate continues, the pivotal change in the widow’s pension policy has struck a chord with many, highlighting broader concerns about social justice and economic stability in contemporary society.

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