Those who have recently entered the labor market will leave it late and with lower pensions than those who preceded them. It is a certainty that many young Italians know and now the OECD, the Organization for Economic Cooperation and Development, quantifies and compares to the rest of the world. According to the report Pensions at a Glance the requirement of future retirement age in Italy is among the highest in Europe: 71 years, against an OECD average of 66, for those who are now entering the labor market.
In Europe, the same retirement age is reported for Estonia and the Netherlands, it reaches 74 for Denmark. Life expectancy counts, that is, the age at which you retire is calculated on the basis of how many years you live on average. For this the age rises.
Costs also increase, but without raising the checks. “The granting of relatively high benefits to young retirees puts Italy’s public pension expenditure at second place among the highest of OECD countries equal to 15.4% of GDP in 2019“. Past and present choices are starting from Quota 100 and the hypothesized Quota 102. With the first measures between 2019 and 2021 it was possible to retire at 62 with 38 years of contributions paid, five years in advance of retirement age set by law.
“The various options available to retire before the statutory retirement age lower the average age of exit from the labor market, equal to an average of 61.8 years against the 63.1 years of the OECD average”. With Quota 102 it would go to 64 years old. These benefits are linked to the contributions paid. Only Spain, in addition to Italy, allows access to full social security rights with less than 40 years of contributions.
The lowest pensions are for women with discontinuous and self-employed work. A worker who starts working at 27 and has 10 years of unemployment over the course of her career will get a 27% lower pension than a full-time employee. All the self-employed have lower pensions. “Self-employed workers can expect pensions that are around 30% lower than those of employees with the same taxable income for their entire career: the OECD average is 25% lower”.
Other stories of Vanity Fair that may interest you:
– Women’s pensions: the gap compared to those of men
– Carlo Cottarelli: “Those who have children should retire earlier”
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