Pensions in 2027: the proposals on the table – a baby bonus, retirement at 64 and higher minimum pensions
In the run-up to the new Budget Law, the proposals on social security put forward by INPS, the ruling parties and the opposition are intertwined with the need to find resources for the revaluation of benefits, to comply with the Constitutional Court’s ruling on the severance pay (TFS) of civil servants and the possible extension of the ‘social APE’ scheme
Key points
A pension allowance for newborns, designed to support them as they enter the world of work, through a funded scheme financed by the State and family members: this proposal from INPS is not the only one in the pension sector ahead of the 2027 Budget Bill. The League, through its Under-Secretary for Labour Claudio Durigon, has proposed extending the option to retire at the age of 64 to workers who paid contributions before 1996, with pensions recalculated under the contributory system.Forza Italia has revived Silvio Berlusconi’s long-standing proposal to increase minimum pensions.
Setting aside the parties’ wishes, it must be borne in mind that the resources required for the pensions section of the 2027 budget are substantial; for the adjustment of pension payments, the realised inflation rate for 2026 stands at 2.9 per cent, and it will be necessary to comply (at least in part) with the Constitutional Court’s ruling on the TFS for civil servants.
Changes in 2027: the raising of pension eligibility requirements and the end of the ‘Ape sociale’
The PD, AVS and M5S are calling for a freeze on the increase in the state pension age and pension eligibility requirements due to come into effect next year, as set out in the 2026 Budget. From 1 January 2027, the age requirement for an old-age pension will be 67 years and 1 month (with a further 2 months to be added from 2028), whilst for the standard early retirement pension, men will need 42 years and 11 months of contributions, and women one year less (again, a further increase of two months is planned from 2028).
With the main flexible retirement options removed from the previous Budget Law (the ‘Women’s Option’, Quota 103)), the ‘Social APE’ – the early retirement scheme for those aged 63 years and 5 months, with at least 30 years’ contributions (36 years for those in arduous occupations) and falling into one of four specific categories (the unemployed, carers, those with a civil disability rating of at least 74 per cent, or workers who have been carrying out arduous work for many years): the scheme expires on 31 December 2026. The ‘Social APE’ scheme allows these categories of workers to retire early and receive a benefit from the INPS (a maximum gross monthly amount of 1,500 euros for 12 months).
A state pension allowance for newborns
The proposal put forward by INPS President Gabriele Fava for a ‘savings account for newborns’ is aimed at securing the pensions of future generations. The name of the scheme currently being developed by experts from INPS and the Ministry of Labour is expected to be the ‘Public Pension Endowment’, which the State would contribute to with one thousand euros a year. This pension savings scheme would be topped up annually by the State from birth until the individual enters the labour market, and is designed to grow over time through a capitalisation mechanism, with voluntary contributions made by family members and by the account holder themselves once they have entered the labour market. The INPS president explained that ‘it would not replace the first public pillar but would strengthen it, for those who currently risk a meagre pension’.
