Swiss authorities expect poorer finances due to additional pension payments
The outlook for Switzerland's public finances has deteriorated for 2026 and 2027. This is due to the introduction of the 13th pension payment and an expected deficit in unemployment insurance, according to the Federal Finance Administration.
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Swiss authorities expect poorer finances due to additional pension payments
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The 13th monthly payment each year from the old-age and survivors’ state pension scheme, which was approved by voters in March 2024, will initially be introduced in 2026 and 2027 without additional funding, the Federal Finance Administration revealed on Thursday.
Unemployment insurance will also show a slight deficit due to the labour market situation, the federal department said. A profit distribution of CHF4 billion ($5.05 billion) from the Swiss National Bank should improve finances in 2026.
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The financial situation is expected to improve again starting in 2028. The reasons for this are planned increases in the value-added tax (VAT) to pay for increases in the national defence budget and to finance the 13th pension payment. An expected economic recovery and an improved situation on the labour market should also support the finances of the social insurance funds, the finance administration said.
+ Swiss voters say ‘yes’ to higher pensions, ‘no’ to retiring later
The Swiss parliament is currently debating how the state will finance the 13th pension payment, with both chambers backing a mixed solution of increasing employee social security contributions and raising the VAT.
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