Banks and insurances: OK to the 10 euro state from the cradle but 'involvement needed'

The insurance and financial sector is in favour of the state pocket money hypothesised by Plus24 in the wake of the idea from Germany, which is studying a bonus of EUR 10 per month for those aged between six and 18. A good idea but with due caution. In general, there is a preference for a model that also involves families and the supplementary pension system. One looks favourably on the virtuous initiatives of Trentino Alto Adige and Friuli Venezia Giulia, which provide pension bonuses only on condition that one opens and maintains a pension fund or a Pip for one's child. "These initiatives, like all those linked to supplementary pensions, have above all the merit of providing young people with awareness - explains Giancarlo Bosser, chief life officer of Generali Italia -. These are very powerful tools that educate them about the idea of saving. Raising young people's awareness of issues such as retirement savings and longevity is a priority in a country with forecasts of sharp demographic decline.

"Pension provision should be tackled as soon as possible and we should follow what is done in Anglo-Saxon countries, where pension funds have always invested much more than Italian ones in equities. The stock markets have shown that they have higher real returns, i.e. net of inflation, than other investments,' points out Alessandro Santoliquido, head of Group Insurance at UniCredit. 'Starting early is fundamental in order to be able to revalue payments in the long term. So I find the proposal launched, which could be supplemented by a similar investment made privately for one's own children, very interesting'.
On the same wavelength are at Axa. "Starting with newborns is a radical but financially intelligent idea, taking advantage of the 'magic' of compound interest," explains Andrea Veltri, chief L&S officer at Axa Italia. "If, however, the payment, as in the German case, comes entirely from the state coffers, it might as well be paid directly into the first pension pillar. In this sense, Trentino's solution appears much more effective, becoming, on the one hand, a multiplier of public resources and, on the other, helping to create a paying-in habit that should remain even after the interruption of state contributions'. The Cnp also welcomes the initiative: "The idea should be accompanied by a communication and education campaign. It will also be crucial to simplify the membership process by trying to combine private and state contributions,' explains Paolo Fumo, commercial director of Cnp Assicura.

A state bonus would also be well received at Itas Mutua, which is already looking with pride at the birth bonus (up to 1,100 euro) devised by the Trentino region where it has seatedMacroeconomic benefits for the countryand the company. "This is an initiative that goes in the right direction: that of raising awareness among citizens and families on the subject of supplementary pensions, an area that is indispensable today. We all know the context of public accounts," explains Alessandro Molinari, CEO and managing director of Itas: European states, including Italy, are finding it increasingly difficult to guarantee the same levels of social protection as in the past. It is therefore a duty, but also an opportunity, to encourage new instruments that complement and strengthen public welfare, offering greater security to future generations. In this sense, the Italian insurance system can and must also be called upon to play a responsible role" . Unipol also calls for participation. "We are willing to work on ad hoc initiatives, if they are configured in such a way as to involve the insurance sector," explain the company led by Carlo Cimbri. "If they are well regulated and accompanied by adequate pension education, they could represent a decisive step towards strengthening the second pillar".

According to Unipol there would be the following benefits A) intergenerational equity: every newborn child would have access to an initial 'hard core' of supplementary pension provision, regardless of family background. The real strength is the 18+ year horizon, which allows compound interest to make even small contributions grow significantly. B) Growth of supplementary pensions: Italy still suffers from a low diffusion of the second pillar; an initiative of this kind would foster a culture of pension saving. C) Macroeconomic impact: the accumulated capital would provide a stable source of long-term investment.
Allianz has repeatedly expressed the view that tax incentives are needed to encourage the build-up of employee-provided retirement savings. "Fund-based schemes with contributions initiated from the citizen's birth are present in many countries around the world and have a robust technical effectiveness because they are based on a significant lengthening of the accumulation phase," explain the German parent company. The cases that can be observed at a global level demonstrate the entrusting of management to specialised operators'.

However, there are those who point out that the sustainability of the state bonus proposal could clash with the reality of public accounts. "While virtuous regional examples, where there is a better spending capacity, have the merit of using public money as a lever to stimulate private savings," explains Alberto Tosti, managing director of Sara Assicurazioni. "Solutions based on co-participation and targeted incentives have shown that it is possible to promote virtuous behaviour and generate active adherence on the part of families, thus filling a systemic gap and contributing to the growth of financial education in the country. The absence of active household involvement could also discourage voluntary saving, delegating responsibility entirely to the state'. "The project would be an incentive for families to set up a pension backpack for all new citizens in good time," also explains Matteo Faissola, Banco Bpm's commercial manager. Mediolanum also fully supports the idea of Plus. We welcome government action," explains Stefano Volpato, commercial director of Banca Mediolanum, "that can reverse a trend of backwardness in family and public welfare that is currently taking place and that will have an impact on the lives of