Switzerland is grappling with a significant financial challenge as its social security systems, particularly the AHV pension scheme, face mounting debts.

A recent study highlights that the introduction of a 13th AHV pension has exacerbated the country's implicit debt, which now stands at 373.3% of GDP.

This situation threatens to burden future generations with unsustainable financial obligations.

The study suggests that demographic changes and the aging population are key drivers of this debt.

To address the issue, experts recommend measures such as increasing the retirement age and adjusting tax policies.

However, these proposals face political hurdles, as seen in the rejection of a dynamic retirement age initiative.

The debate continues over whether to fund the 13th pension through increased VAT or wage contributions, with political parties divided on the best approach.