Italy has changed its early retirement rules to allow a merger of first and second-pillar contributions to enable pension payouts for those wishing to retire at 64, before the statutory retirement age of 67.
The new rule, introduced with the 2025 budget, was approved yesterday by the country’s president Sergio Mattarella. It applies to employees who have started to accrue savings under the so-called contributory system ‘sistema contributivo’, where pension payouts result from contributions, as opposed to a system where the amount of pension is based on the salary received in the last years of work, ‘sistema retributivo’.
Italy’s finance minister Giancarlo Giorgetti said: “We consider [second-pillar complementary pensions] crucial to guarantee decent pensions in the future compared to those that could result from the calculation based on the contributory system of the Fornero law.”
However, according to the new rules, workers will need to add five years of contributions, up from 20 to 25 years, starting from 1 January 2025, and a further five years starting from 1 January 2030, to opt for an early retirement adding first and second-pillar pensions, according to a paper published by the Senate, the upper house of the Italian parliament.
Furthermore, according to the paper, from 1 January 2030, the minimum amount of pension payout resulting from the savings accrued, and necessary to access the early retirement option, increases from three to 3.2 times the amount of the social allowance ‘assegno sociale’, a benefit paid upon request to people in disadvantaged economic conditions.
Based on the 2025 budget law, employees in public administrations can continue to work after reaching the statutory retirement age of 67, until 70 years old.
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