The Italian government is planning to freeze future increases in the retirement age, a move that would prevent the retirement age from rising to 67 years and 3 months by 2027. Undersecretary for Labor, Claudio Durigon, has secured preliminary approval from Economy Minister Giancarlo Giorgetti to include this measure in the upcoming budget law. This freeze aims to maintain the current retirement age, avoiding the demographic-driven automatic increases.

Furthermore, Durigon indicated that the budget law will also include mechanisms to encourage investment in future pensions through the "second pillar," i.e., private pension plans. He explained that the so-called "Giorgetti bonus," a measure that strengthens the worker's freedom – whether to remain in their post or retire earlier – will be a fundamental part of these reforms. These statements come at a time when Italian officials are seeking to balance the financial sustainability of the pension system with the expectations of citizens who desire greater flexibility in their retirement choices.

In a related context, Durigon called for strengthening the "Opzione Donna" (Woman's Option) initiative, which aims to enable women to retire early, considering it currently "inefficient" and lacking significant "appeal." Conversely, he expressed doubts about the effectiveness of "Quota 103," another retirement mechanism, citing its "low utilization" and suggesting it may not represent an "optimal form of exit flexibility." He also reiterated his proposal for a 5% flat tax for newly hired young people up to 30 years old, and for those under 35 who return to reside in Italy, for a period of five years. He stressed that the state must play its part, but this must be met with a cultural change from Italian companies to ensure they do not reduce labor costs at the expense of young people.

For his part, the President of the National Institute of Social Security (INPS), Gabriele Fava, stated that the institute will adhere to the legislative decisions on the matter. He confirmed the robustness of the Italian pension system, noting that in 2024, 27 million insured individuals were registered, 7 million of whom are under 35. However, he emphasized that the system's future depends crucially on employment rates, particularly among young people, women, and seniors, to ensure the sustainability of "provisions" in Italy.

Key Indicators

Signals of government policies aimed at stabilizing the retirement age in Italy, which could impact public spending on pensions.
Developments in labor laws and demographic structure may indicate shifts in the Italian labor market.

Regional Perspective

The Italian government is focusing on maintaining the current retirement age, reflecting a response to increasing demographic pressures and a desire to support citizens' purchasing power. This approach distinguishes Italy from some other European nations that are continuously raising their retirement age to address financial sustainability challenges.