Pensions lowered by 600 euros for those who started working since 1996, as stated by the law.

The Urgency of Pension Reform

In her inaugural speech to the Chambers in October 2022, Prime Minister Giorgia Meloni highlighted the pressing need for a pension system that also ensures the younger generations and those who will rely solely on the contributory system for their retirement benefits.
She described it as a “social bomb” that we continue to ignore, which will impact millions of current workers in the future, potentially leaving them with even lower pensions than what is already deemed inadequate.

The Missing Pieces

Ironically, the only reference to pensions in the Prime Minister’s speech was the so-called “pensione di garanzia,” with no mention of repealing the Fornero Law, a focal point of Matteo Salvini’s electoral campaign, or the promised increase of pensions to €1,000 as pledged by Silvio Berlusconi.

The Current Situation

Two years have passed since those statements were made, with two Budget Laws in between, yet no concrete actions have been taken in this regard.
This delay is concerning given the growing number of workers who started their careers after 1996 and are at risk of receiving significantly low pensions, potentially below the current minimum pension threshold of €598.61.

The Challenges of the Contributory System

Workers who fall under the pure contributory scheme, especially those who started contributing after 1996, face challenges in pension calculation and attainment.
The purely contributory system bases pension calculations on all the worker’s contributions, with the final pension amount determined by a coefficient that increases with delayed retirement age.

It is not uncommon for individuals under this system to receive meager pensions, particularly when their contribution years are limited due to early retirement caused by illness or disability, or when qualifying for spousal survivor benefits, without the possibility of integration to the minimum threshold.

The Call for Adequate Pensions

It is essential to address the issue of low pensions, especially for those under the contributory system.
A worker retiring at 67 with 20 years of contributions but low average salaries may only receive around €400 monthly, highlighting the inadequacy of the current system.

Furthermore, individuals with health-related early retirements or disability pensions often find themselves with pensions below €600, emphasizing the need for a comprehensive reform to ensure dignified retirement benefits for all.

The Need for Immediate Action

The looming “pension bomb,” as described by Prime Minister Meloni, underscores the necessity for resources and policy interventions to safeguard future retirees from financial insecurity.
While various governments have recognized the urgency of ensuring a minimum pension for all, concrete actions to address this critical issue are yet to materialize.

As the debate on pension reform continues, there is a growing consensus on the importance of securing basic living standards for retirees, irrespective of their contribution history.
The time is ripe for meaningful reform that guarantees a dignified retirement for all Italian workers.