Monday, May 07, 2018

Switzerland: President Pushes for Tax Hike To Solve Pension Problem, Not Raising Retirement Age

In an interview with Neue Zürcher Zeitung, Swiss President (and Home Affairs Minister) Alain Berset has defended his proposed pension reform plans, which include a 1.7% increase in valued-added tax (VAT) to fund it. As reported in SwissInfo.ch, Berset specifically said that fixing a general retirement age will not solve the problem because companies will not employ older workers.
“Older workers continue to be disadvantaged. But it is true that, due to demographic changes and the shortage of skilled workers, they will be in greater demand in the future. Rigid fixation on a generally higher retirement age is the wrong approach. If we give the right incentives, more people will work longer voluntarily. The aim must be to raise the effective retirement age,” the minister told [the newspaper].

Source: "Berset pushes for tax-hike to solve pension problems' SwissInfo.ch (May 7, 2018)

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