Bern, May 20, 2026

On May 20, 2026, the Federal Council presented its plans for financing the AHV in Bern, which include higher taxes and potential increases in wage contributions but no rise in the retirement age.

In December, the AHV will pay out a 13th pension, costing the social system an additional 4 to 5 billion francs annually. This extra pension payment was approved by voters in 2024.

The Federal Council has proposed three financing options for the AHV. These include a temporary increase in VAT by 0.7 to 0.9 percentage points, which would cost consumers 2.6 to 3.4 billion francs per year.

Alternatively, wage contributions could be raised by 0.2 percentage points. However, the Federal Council opposes a general increase in the retirement age beyond 65.