Pensions: Key Updates from the 2025 Budget Law

Overview of the 2025 Budget Law on Pensions

The long-awaited text of the 2025 Budget Law has finally been released.
While it remains subject to changes as it goes through Parliament, we can now clearly see the updates concerning pensions.
Contrary to what was announced during the electoral campaign by the League, the reform of the Fornero Law is absent, as is the proposed increase to 1,000 euros for pensions below the minimum threshold.

Once again, for the third consecutive year, the allocation for pensions in the budget is limited to a few corrective measures that don’t fundamentally alter the rules for retirement or the calculation of pension amounts.
However, this doesn’t necessarily spell bad news, especially considering that recent rumors suggested a much worse outcome, with the possibility that some forms of early retirement would not be extended.

Good News for Early Retirement

The Ministry of Economy has confirmed that the budget merely extends the existing measures expiring at the end of 2024.
This means that, alongside the Fornero Law provisions, individuals can retire in 2025 at age 62 with 41 years of contributions through Quota 103, which imposes penalties due to a fully contributory recalculation of the pension.

Additionally, the Ape Sociale allows for early retirement starting at 63 years and 5 months with 30 years of contributions.
This option is available for the unemployed, those with disabilities, and caretakers of individuals with significant disabilities.
Furthermore, the Opzione Donna enables women to retire at age 61, reducing retirement age by one year for each child, up to two years, provided they have 35 years of contributions.

Incentives for Delaying Retirement

Incentives are available for those reaching retirement eligibility under Quota 103 who opt to continue working, including a wage bonus.
This bonus, known as the Maroni bonus, allows workers to forgo a part of their contributions for an increase in salary.

Pension Adjustment Mechanism

The budget does not introduce a reduction mechanism for pension adjustments like those in 2023 and 2024.
The revision will return to the system established by law No.
448 of 1998, linked to the cost of living.
However, inflation predictions suggest that adjustments will be limited.

Overall, while some anticipated reforms did not materialize, the 2025 Budget Law provides a clear outline of existing pension provisions, ensuring some degree of stability in uncertain times.