Budget measures: towards a savings account with a state contribution from birth until entering the world of work
The proposal put forward by INPS President Gabriele Favia, ahead of the 2027 budget, aims to provide state support for generations who, faced with employment instability, low wages and fragmented careers, risk receiving pensions that are far too meagre in the future
Key points
The ‘pensions’ section of the 2027 budget includes a proposal to set up a savings account, into which the State would make annual contributions, intended for newborns to support them at every stage of their upbringing until they enter the world of work.
A commitment of at least one thousand euros per year from birth
Following the proposal put forward this summer at the Rimini meeting by the President of INPS, Gabriele Fava, experts from the Institute and the government are working to finalise the new support measure for young people, which is expected to be called the ‘Public Social Security Grant’. The INPS President then revisited the proposal during a Lega event on the 2027 Budget Bill, suggesting that at least one thousand euros a year be paid to newborns. ‘To truly function as a social security savings scheme,’ he said, ‘the scheme should provide at least €1,000 a year from the State for every newborn. 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 accompany the individual until they enter the world of work. The capitalisation mechanism would see the total amount grow over time.”
Annual cost of 355 million euros for each new generation
The costs? With around 355,000 births a year, the measure would have an initial cost in the region of 355 million euros a year for each new generation concerned. ‘It is the price of a very clear choice,’ added Fava. Telling every child born that the State is investing in them from day one. Not just in words, but through resources that grow over time. If we want to tackle the pension problem facing the younger generations seriously, we must start when retirement still seems a long way off, not when it is already too late. The Savings Book would therefore not be an alternative to the state pension scheme, but a complementary tool, with a contribution from the state and the option for families and grandparents to make voluntary contributions over time.”
The message from the INPS chairman is therefore: ‘We do not want to replace the first public pillar. We want to strengthen it for those generations who, faced with employment instability, low wages and fragmented careers, risk receiving pensions that are far too meagre in the future.’
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