Current Affairs

Durigon: retirement at 64 for 80,000 pensioners who have been paying contributions since 1996

Ahead of the Budget Bill, the Under-Secretary of State for Labour explained that extending the flexible early retirement scheme to workers in the mixed system would cost 1.5 billion a year: ‘It could be implemented on a trial basis for a three-year period’

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

Allowing workers who began paying contributions before 1996 to retire at the age of 64: according to INPS estimates, this would result in around 80,000 additional pensions.

Ahead of the forthcoming Budget Bill, the proposal put forward by the Under-Secretary of State for Labour, Claudio Durigon, was outlined in detail during the Lega event ‘A tua difesa, verso la Finanziaria 2027’ in a face-to-face discussion with the President of INPS, Gabriele Fava.

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Annual cost of 1.5 billion for flexible retirement at 64

Durigon explained that implementing the proposal – which provides for retirement at 64 even for workers in the so-called ‘mixed’ system – with their pension amount recalculated under the contributory scheme – would cost 1.5 billion a year and could be rolled out on a trial basis over the next three years. “We want to give those who started working before 1996 the chance to choose,” he added, “just as has been done for those under the purely contributory scheme,” said the Under-Secretary.
As for sustainability and the possible objections from the Minister for the Economy and Finance? “Minister Giorgetti agrees,” added Durigon. “Pension expenditure stands at 326 billion, whilst revenue amounts to 296 billion. But who is the employer of pensioners? It is the State. Those 326 billion are gross figures; to arrive at the net figure of 76 billion, that amount must be deducted from the 326 billion – it is clear that the sustainability of the pension system in Italia is strong.” In 2026, for flexible early retirement at 64 for those with a purely contribution-based pension (with contributions paid from 1 January 1996), 20 years of actual contributions are required and the income threshold is three times the social allowance (€1,638.72).

In recent days, the CGIL had rejected this proposal, estimating that for an annual salary of 35,000 euros, the pension calculated under the mixed system would be approximately €1,726 per month, whereas under the contribution-based recalculation it would fall to around €1,543, representing a reduction of 10.6 per cent. It should be noted that the 2025 Budget Act had provided for a minimum of 25 years’ contributions for those who had used the supplementary pension to reach the minimum payment threshold, a measure which the State General Accounting Office had estimated would have affected a potential 100,000 pensioners, but this provision was subsequently superseded by the 2026 Budget Act.

5 per cent flat tax for employers who take on young people

Durigon himself has spoken out in favour of freezing pension adjustments for pensioners who move abroad and, on the other hand, the many young people who leave the country every year to seek work elsewhere, he proposed introducing a 5 per cent flat tax for a period of five years for employers who take on young people: ‘We must ensure that young people stay in Italia, by offering them incentives to remain here or to return from other countries.”

Fava: savings account for newborns with €1,000 from the State

The president of INPS, Gabriele Fava, has revived the proposal, first put forward earlier this summer, to introduce a savings account for newborns, into which the State would pay €1,000 a year. “It is a simple and recognisable scheme, funded by the State from birth and designed to grow over time through a capitalisation mechanism. It would not be a one-off bonus that ends at birth. It would be a commitment that the State would renew over time and which would support the individual right up until they enter the world of work.”

As for the costs, and any potential objections from the State General Accounting Office regarding funding, Fava pointed out that the latest ISTAT figures show just 355,000 births, meaning the initial cost to the state coffers would be 355 million euros: ‘This proposal also brings with it another positive factor: time,’ added the INPS president. ‘Forty years of capitalisation – an advantage that those starting at the age of 20 will see grow exponentially. It should not be viewed as an expense, but rather as an investment that will reduce the cost of meagre pensions in the future. The measure would have an initial cost in the region of 355 million euros per year for each new generation concerned. ‘We have seen billions spent in the past on measures that failed to deliver lasting value: the real question is not how much it costs, but how much it will cost us tomorrow if we have not invested enough in our children.’

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