Supplementary pension provision finally competitive. Waiting for the green light.

In the pension landscape of Italia, historically marked by low participation, the reform planned for 2026 introduces novelties that could change workers' habits. In the OECD report Pensions at a Glance 2025 the participation in voluntary pension plans in advanced economies is published. For Italia, total participation in supplementary pension plans is around 26.7% of the working age population (15-64 years). In many other OECD countries (such as Germany, Ireland, Japan, etc.) this percentage is substantially higher, often exceeding 40-60%. An ageing population and rising pension expenditure make effective action urgent. A first step of the reform is the increase of the deductibility limit for contributions to supplementary pension schemes from EUR 5,164.57 to EUR 5,300 as of 2026. This offers a small tax benefit, especially to those who already contribute, but while it is a partial improvement, it is an educational signal in building a more widespread pension culture. More significant is the greater flexibility in final benefits: in addition to the traditional options of life annuity or lump sum, new delivery methods and defined duration annuities will be introduced, allowing pension income to be modulated according to one's needs, perfecting the Life Cycle mechanism. The real breakthrough, however, concerns the portability of the employer's contribution: as of 1 July 2026, the employer's contribution can be allocated to the fund chosen by the employee, whether it is a negotiated, open-ended or a PIP. This removes a historical constraint, allowing workers to freely choose the most efficient, performing or transparent fund, without losing their employer contributions. This encourages competition based on service and performance, rather than contractual affiliation. However, open pension funds will have to prove that they really are more advantageous than negotiated funds, especially in terms of management costs and net returns. The quality of assistance will be crucial: workers, often inexperienced, will need personalised advice and guidance. Funds that invest in training, transparency and proximity to the member will be able to win the trust of members over time. Another key element will be communication: those who can explain the advantages, risks and costs of the various pension solutions clearly, also using advanced digital tools, will win. Constant dialogue with workers will be a competitive advantage. In addition, funds will have to accompany the client throughout the entire working life cycle, adapting investment strategies and disbursement methods to changing needs over time. Only those offering truly flexible and customised solutions will be able to seize the opportunities offered by the reform. As the saying goes, 'it is not enough to open the door, one must also know how to welcome those who enter': the real challenge will be to transform the greater freedom of choice into a real improvement in complementary pension provision. Added to this is the strengthening of the silence-consent mechanism for new employees in the private sector, unless they explicitly opt out. It is not just a matter of increasing the number of members, but of imparting a cultural change: supplementary pension provision is no longer an optional extra, but a necessity in a system where the public pension alone will not suffice to guarantee the standard of living of the new generations. Overall, these measures do not solve but can help to bridge the gap in Italy in the spread of supplementary pensions. However, everything will depend on the speed and quality of regulatory implementation. Without the necessary clarifications and final approval by Covip, particularly on portability, the reform risks remaining just a good intention. Italia cannot afford further delays: every year of delay weighs on public finance and reduces the possibility of building a truly sustainable system.