Switzerland is set to introduce a 13th AHV pension payment starting December 2026, increasing annual costs by CHF 4 billion.

To fund this, the Social Commission of the Council of States proposes raising VAT and wage contributions in two stages.

Additionally, a new initiative seeks to abolish the pension cap for married couples, potentially increasing their benefits by up to CHF 1,260 monthly.

This move would add CHF 3.6 billion annually to AHV expenses.

While the Federal Council opposes the initiative, citing existing benefits for married couples, a centrist-left alliance is pushing for comprehensive funding solutions.

The debate highlights the challenge of balancing pension reforms with financial sustainability.