In Italy, “the granting of relatively high benefits to young retirees means that public pension expenditure is in second place among the highest in OECD countries”
Pensions in Italy, the latest news comes from the OECD Pensions at a glance 2021 report, released today. In Italy “the granting of relatively high benefits to young retirees puts public pension expenditure in second place among the highest in OECD countries, equal to 15.4% of GDP in 2019 “underlines the OECD. The fact is, explains the organization, that” the different options available to retire before the retirement age provided by the law lower the average age of exit from the labor market, on average equal to 61.8 years against 63.1 years of the OECD average “.
The aging of the population, the organization notes, “will be rapid and by 2050 there will be 74 people aged 65 and over for every 100 people between the ages of 20 and 64, which is one of the largest ratios. Over the past 20 years, employment growth, even through longer careers, has offset more than half of the aging pressure on pension spending in Italy. Nonetheless, the latter has increased by 2.2 % of GDP between 2000 and 2017. For Italy, the increase in employment continues to be of crucial importance, especially in the older age groups “.
The generation that now enters the labor market in Italy will retire on average at 71 years of ageWhile it is now possible to retire from active life on average at 61.8 years, thanks to the “different options available” to retire early, the report emerges.
Italy, explains the OECD, “is among the seven OECD countries that link the statutory retirement age to life expectancy. bonding is not necessary to improve retirement finances, but aims to prevent people from retiring too early with too low pensions and to promote employment at an older age. In Italy, the ‘normal’ future retirement age requirement is between the highest with 71 years of age, such as Denmark (74 years), Estonia (71 years) and the Netherlands (71 years), against an OECD average of 66 years for the generation now entering the labor market ” .
“In Italy and in these other countries – continues the OECD – all the improvements in life expectancy are automatically integrated into the retirement age. Alternatively, Finland and the Netherlands pass on two thirds of the improvements in life expectancy to the retirement age “. On the other hand, today “the various options available to retire before the statutory retirement age lower the average age of exit from the labor market, equal to an average of 61.8 years against the 63.1 years of the OECD average”.
As for the average income of over-65s in Italy is similar to that of the total population, but is “on average 12% lower than in the OECD area and 15% lower than Italy 20 years ago”. However, the organization notes, “income inequality and relative income poverty rate among the elderly have aligned with the median value of OECD countries, following the significant decline in the old age poverty rate recorded in Italy. in the last decades”. During the crisis caused by Covid-19, in Italy “pensions did not decrease and pension rights continued to fully mature even for workers in layoffs, in a similar way to what happened for other OECD countries”.