GENEVA, March 3, 2024 (BSS/AFP) - Switzerland, with an ageing population

facing an ever-swelling cost of living, is holding referendums Sunday on two
initiatives which would reshape pensioners' lives in different ways.

A proposal to gradually raise the retirement age from 65 to 66 looks set to
fail, but a second proposal seeking to boost pension payments could squeak
through.

That proposal, put forward by Swiss trade unions and entitled "Better living
in retirement", calls for a 13th monthly pension payment each year, similar
to the "13th month" salary many employees receive in Switzerland and other
European countries.

Opinion polls indicate that most Swiss voters favour the initiative, although
the "yes" lead has dwindled, and the outcome remains unclear.

Monthly social security payments in Switzerland can rise to 2,450 Swiss
francs ($2,780) for individuals and 3,675 francs for married couples.

The payments do not go far in a country consistently ranked among the most
expensive in the world.

Rent for a typical two-bedroom apartment in Swiss cities is at least 3,000
francs, and a coffee costs upwards of five francs.

If the Swiss approve the shift, they would not be the first in Europe --
neighbouring Liechtenstein, another pricey nation which uses the Swiss franc,
has had a similar system in place for years.

- 'Soaring' costs -

"There is a purchasing power crisis," said Pierre-Yves Maillard, head of the
Swiss Trade Union Federation (SGB) and part of the "yes" campaign.

"Retirees are seeing their living standards erode," he told AFP last week.

"The cost of living just keeps soaring," agreed Jakob Hauri, a retiree quoted
by the campaign.

Left-leaning parties support the initiative, but it is being fiercely fought
by right-wing and centrist parties, and the Swiss government and parliament
officially oppose it.

The government has said the proposed hike would cost more than four billion
Swiss francs a year, warning it would require tax increases and could
threaten the financial stability of the social security system.

It also maintains there would be limited social benefit from the proposed
change, which would hand additional payments to all pensioners, regardless of
their financial situation.

"If the initiative passes, a lot of retirees will receive a 13th social
security payment even though they don't really need it," it warned.

- 'Irresponsible' -

For the hard-right Swiss People's Party, the "irresponsible" initiative will
allow freeloaders to deplete the social security system.

Switzerland's largest party has been striving to drum up opposition with
adverts, including one showing 100-franc notes being sucked down a drain.

That campaign seems to have had an effect.

In the latest survey carried out by gfs.bern for public broadcaster SSR, 53
percent of respondents said they backed the initiative, while 43 percent
opposed it.

The support is down from 61 percent in a similar poll less than a month
earlier.

It is also increasingly uncertain whether the initiative will garner the
double-majority needed to pass, by winning both the popular vote and a
majority in most of Switzerland's 26 cantons.

"We are hopeful," Maillard said.

- Hike retirement age? -

Switzerland's direct democracy system is also tackling Sunday a proposal from
the youth branch of the right-wing Liberal Party to gradually raise the
retirement age from 65 to 66 over the next decade to ensure full financing of
the pension system.

The vote comes less than two years after Swiss voters narrowly opted to raise
the retirement age for women from 64 to 65, to match the retirement age for
men.

But the initiative appears dead in the water. Latest surveys indicate only 35
percent of those questioned favour such a move, while 63 percent oppose it.

Most people vote in advance in Switzerland, which holds referendums every few
months.

On Sunday, polls will open for just a few hours before closing at noon, with
initial results expected by mid-afternoon.