Pensions, Cida: senior executives’ pensioners stand to lose up to 200,000 euros over 14 years
The Confederation is calling for the deletion of Article 55 of the draft Budget Bill, urging the Government to consider a different allocation of the resources already provided for in the budget
Up to 200,000 euros lost over fourteen years, with the risk of a further penalty of 3,000 euros in 2027 alone. This is the situation – as highlighted by Cida, the Italian Confederation of Executives and Senior Professionals – of the repeated measures regarding the revaluation of medium-to-high pensions which, ‘from 2012 to the present day, have progressively eroded the value of the pensions of those who have paid high social security contributions throughout their working lives’.
This process does not merely concern the income of today’s pensioners, the Confederation points out, but raises a broader issue of fairness and confidence in the sustainability of the pension system, particularly for younger generations.
For retired senior executives, repeated freezes and restrictions on automatic pension adjustments have resulted in a loss of purchasing power of more than 21 per cent. This phenomenon, albeit with more limited effects, also affects a large number of pensioners from highly skilled professions in both the public and private sectors. And this situation risks worsening further in 2027, should the provisions contained in the draft Budget Bill – currently under consideration by the Chamber of Deputies at first reading – be confirmed.
“Fourteen years of cutbacks have already resulted in very significant losses, and now, with the forthcoming Budget Bill, we risk incurring further losses. We cannot keep asking the same citizens to make sacrifices, especially those who have worked for decades, paying contributions in line with their earnings and complying with all the rules,” emphasises Stefano Cuzzilla, president of Cida.
Simulations
Simulations indicate that, for next year, there will be a shortfall of 2.07 per cent compared with full indexation for a pension of €5,500 gross per month, and 2.24 per cent for one of €10,000, according to the calculation assumptions adopted. The extent of these shortfalls is made clear by the analyses of individual pension profiles. For a Senior Manager / Executive with a gross monthly pension of €5,500, the cumulative loss since 2012 amounts to approximately €96,000, the equivalent of 17 months’ net pay. In 2027 alone, a further loss of €1,530 is estimated. For higher pensions, the total loss could approach €200,000, to which a further €3,000 could be added in 2027.
