The referendum to increase AHV pensions significantly increases the redistribution from young to old, with older people benefitting at the expense of younger individuals. Despite the controversy surrounding the financing of this pension increase, the Federal Council has presented financing options that focus on increasing wage deductions and potentially raising VAT. However, there are debates within the Social Commission of the National Council about the timing and method of financing, with some suggesting a delay in implementing the rapid financing proposal in favor of a more comprehensive reform that includes an increase in the retirement age.

Despite these complexities, it is clear that additional pensions will start flowing from 2026, with estimates suggesting a substantial cost over the first twenty years. The burden of financing these pensions will primarily fall on younger generations, exacerbating the generational divide. There are concerns about potential delays in financing that could shift even more of the burden onto younger individuals. The ongoing debate about financing highlights the need for a balanced approach that takes into account intergenerational equity and ensures long-term sustainability of the AHV system.