Politics · Italy · 7 hrs ago
Italy plans tighter pension increases, saving €8.5bn after tax over 10 years
Italy’s budget plan would limit pension increases from 2027 by returning to an indexation system similar to the one used in 2023.
Under that system, pensions up to four times the minimum pension receive the full inflation adjustment.
Larger pensions receive only part of the increase, with the share falling as pension amounts rise and reaching 32% for those above ten times the minimum.
The government estimates the change would save €14.2 billion before tax effects and €8.5 billion after tax effects over 10 years.
In the first three years, the estimated reduction in pension spending is €1.476 billion a year before tax effects, or €885 million after them.
The savings are projected through 2036, but are expected to decline progressively from 2030.
Italy’s 2027 budget plans to limit pension increases, with projected savings of €8.5 billion after tax over ten years.
The measure would return from 2027 to an indexation system similar to the one used in 2023.
Pensions up to four times the INPS minimum would receive full indexation, while higher pensions would receive progressively smaller increases.
The lowest indexation rate would be 32% for pensions exceeding ten times the minimum.
The measure would reduce increases rather than cut the nominal value of pension payments.
- Who
- The Italian government plans the measure, which affects pension recipients.
- What
- Pension increases would be limited for pensions above four times the INPS minimum. The projected ten-year saving is €8.5 billion after tax.
- When
- From 2027, with savings calculated through 2036.
- Where
- Italy.
- Why
- Not stated.
This story does not have two clearly opposing sides.
The budget plans to restore an indexation system similar to the one used in 2023.
The projected savings are expected to start declining progressively.
The estimates cover savings through this year.
- Gross savings
- €14.2 billion over ten years
- Net savings
- €8.5 billion over ten years, after tax effects
- Full indexation threshold
- Pensions at or below four times the INPS minimum of €611.85
- Lowest indexation rate
- 32% for pensions above ten times the minimum
- First three years
- Estimated annual reduction in pension spending of €1.476 billion gross and €885 million net
4 sources
Dalla stretta su rivalutazione delle pensioni risparmi lordi per 14,2 miliardi in 10 anni
La legge di Bilancio porterà una stretta alla rivalutazione delle pensioni. Lo Stato risparmia 8,5 miliardi di euro in 10 anni
Pensioni, maxi stretta sulla rivalutazione: ecco chi sarà penalizzato. Per lo Stato risparmi per 14,2 miliardi in 10 anni
Pensioni tagliate dal governo Meloni, ecco quanto si perde. La tabella
What people are saying
To distribute handouts and finance propaganda, the Government cuts spending on schools and pensions
The reduction in IRPEF limited to 2027 and the cut to pension indexation presented as temporary but whose effects are spread over the coming years are a mockery of workers and a blow to pensioners