Switzerland Plans to Ensure Funding for 13th AVS Pension by 2026

• The Swiss Federal Council aims to ensure funding for the 13th AVS pension from 2026
• Two options are being considered to cover the additional costs: increasing employment contributions or a combination of employment contributions and VAT
• The Federal Council wants to prevent the deterioration of AVS finances and reduce the federal contribution temporarily
• The 13th pension will be paid annually to all beneficiaries from 2026
• The cost of the 13th pension will be around 4.2 billion francs initially, increasing to 5 billion after five years
• The Federal Council plans to reduce the federal contribution to AVS to 18.7% to avoid further burden on the federal budget

Source: admin.ch

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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