The Swiss Senate has confirmed that starting in 2026, an additional old-age pension payment will be disbursed annually in December. This decision was made in response to the "Better living in retirement" initiative, which received support from 58.2% of Swiss voters in a March referendum.

The initiative aims to provide extra financial assistance to pensioners facing economic difficulties. The cost of this initiative is estimated to be CHF4.2 billion ($4.7 billion) per year and will be funded by a 0.7 percentage point increase in value-added tax (VAT) in Switzerland.

The additional payment will be available to all individuals who are entitled to an old-age state pension, and it will not impact the calculation of monthly pensions or eligibility for supplementary benefits. The House of Representatives has chosen not to address the financing details at this time, but the preparatory commission has stated that immediate action is not necessary due to the fund's current financial status. Parliament will continue to evaluate the situation.