Total assets of Italian private pension funds have steadily increased in the last seven years by 64 percentage points to reach €108bn in 2021, according to figures published by the association of private pension funds – Enti Previdenziali Privati (Adepp).

This steady growth is the consequence of an increase in contributions, leading to a positive income of €25bn, and returns achieved amounting to 1.9% net per year on average between 2013 and 2021.

Private pension funds in Italy invest 32.4% of their assets in securities investment funds, 21.8% in other investment funds, 13.7% in government bonds, 7.2% in equities, 5.3% in other bonds, 6.6% in cash, 8.6% in other investments, and 3.4% in directly held real estate.

In the period under review, the schemes have more than quadrupled allocations in securities funds, from €8.3bn in 2013 to almost €35bn at the end of 2021, while reducing the amount of directly-owned property from €11.5bn in 2013 to around €4.7 today.

Equity investments almost doubled from €4.1bn to €7.7bn during the period, according to Adepp.

The pension funds have cut their allocations to government bonds significantly, from 19.7% in 2013 to 13.7% in 2021, it added.

They allocate a significant share to Italian government bonds, amounting at the end of 2021 to €8.5bn, or 60% of the total €14.7bn invested in bonds.

The number of members contributing to the private pension funds has increased from 1.68 million in 2020 to 1.69 million in 2021. The number of members still working also grew from to 1.59 million year-on-year in 2021.

According to Adepp, 50% of female professionals has an income of less than €16,500 per year and half of men of less than €26,000 per year.

Alberto Oliveti, the president of Adepp, said: “We ask the new government to re-assess the sustainability criteria in line with current times, together with a tax framework in line with our mandate.”

He added: “We expect supervisory and control activity to be carried out in line with the role that was assigned to us through privatisation.”

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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