Italian Budget Law 2024

Pensions, what amount to reach to go there in 2024

The 2024 Budget Law also intervenes on the economic requirements for accessing the old-age pension (67 years) and the contributory option of early retirement (64 years).
But if in the first case there is an improvement, as the limit to be reached for retiring at 67 is lowered, in the second the threshold is raised.
To make the situation worse, there is the revaluation scheduled for January, with which the social allowance – a reference parameter for calculating the economic requirements required to retire – is further increased.
It must be said that at the moment it is not possible to indicate a precise amount for the 2024 social allowance as Istat has yet to formalize the revaluation rate that will be used to adapt social security and welfare treatments to the cost of living: we can however make an estimate in as the Update Note to the Def indicates an assumed inflation rate of 5.4%.
In light of these considerations, let's see what amount the accrued pension must reach to allow exit from the job market as early as 2024 also by virtue of the innovations introduced by the Budget Law.
read also Pensions, what changes in 2024: the Budget law worsens the requirements and calculation rules Economic requirements, when they are required to retire Only pure contributors – i.e.
those who have contributed seniority after 1 January 1996 – must also meet the economic requirements to be able to retire.
This applies both to the old-age pension and to the early pension reserved for them, since: in order to retire at 67 years of age and with 20 years of contributions, those who fall entirely within the contributory regime must have accrued a pension equal to at least 1.5 times the value of the social allowance.
In 2023, therefore, access is permitted upon reaching a check equal to 754.90 euros; for early retirement, a contributory option, leaving work is permitted upon reaching 64 years of age and always with 20 years of contributions, provided that the allowance is equal to 2.8 times the value of the social allowance.
In 2023, the amount to be reached is therefore equal to 1,409.15 euros.
However, it is especially the first mechanism that causes discussion, as there are pure contributors who, having difficulty accruing the required amount, are forced to postpone retirement, even reaching 71 years of age (thanks to the option of the old-age pension reserved for them).
Which is why the government intervened on this requirement, not eliminating it – as Giorgia Meloni had anticipated in the press conference – but rather cutting it by 0.5.
This means that to retire at 67 it will be enough to reach an amount equal to the annual value of the social allowance.
Likewise, however, the government has added a 0.5 to the early pension contribution option, thus limiting the possibility of leaving at 64 to those who receive an allowance equal to 3.3 times the value of the social allowance.
Pension, what amount to reach to go there in 2024 At this point we must calculate the presumed value of the 2024 social allowance.
Today it is equal to 503.27 euros, but we must consider the adjustment of the revaluation which will add a further 0 to the updated value for 2022, 8%, thus bringing it to 507.02 euros.
At this point we must add the revaluation scheduled for the beginning of 2024, for which – as anticipated – a rate of 5.4% has been estimated which in the case of the social allowance applies in full.
This means that the amount of the social allowance in 2024 should rise to 534.39 euros.
This means that it will be exactly what you need to achieve to retire at 67, almost 200 euros less than today; instead, a check of 1,763.51 euros will be needed for the contributory early pension, more than 350 euros difference compared to the 2023 requirement.

Author: Hermes A.I.

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