Business · Economy · 1 day ago
Italian pension plan would deepen permanent losses for higher earners
Cida says limits on pension increases since 2012 have reduced retirees’ income in Italy, with losses of up to €200,000 for people whose gross monthly pensions exceed €10,000.
The group estimates that someone receiving €10,000 gross a month has lost about €178,000 over 14 years, with another €3,029 in losses projected for 2027 under its calculation.
The government’s budget plan would further restrict how pensions are adjusted for inflation, affecting pensions above four times the minimum, or about €1,850 net a month.
The proposed reduction would make some losses permanent, because the unpaid part of each annual increase would not be restored later.
Cida, pension managers and trade unions oppose the change, and Cida has asked the government to remove the relevant budget measure.
The restriction would save €1.4 billion a year, while Deputy Prime Minister Antonio Tajani has said he is open to proposing amendments.
Any changes would need substantial alternative funding.
Italy’s proposed budget measure would tighten pension inflation adjustments, creating permanent losses for higher earners, according to calculations by Cida.
Cida estimates that someone receiving a gross monthly pension of €10,000 has lost about €178,000 since 2012 and would lose another €3,029 in 2027 under its assumptions.
The measure would affect pensions above four times the minimum, about €1,850 net per month.
Cida, Federmanager and unions oppose the change and are calling for it to be removed from the budget.
The government’s proposed indexation limits would reduce public spending by €1.4 billion a year, according to the article.
- Who
- Cida says pensioners with higher incomes would face permanent losses. Cida, Federmanager and unions oppose the proposed measure.
- What
- The budget plan would tighten the mechanism for adjusting pensions in line with the cost of living.
- When
- The proposed measure is part of the 2027 budget. Cida’s estimates cover losses since 2012.
- Where
- Italy.
- Why
- The plan would reduce public spending by €1.4 billion a year. Cida says partial adjustments would cause losses that pensioners would not recover.
Cida and other opponents
Government and budget measure
Impact
Cida and other opponents
Cida says partial inflation adjustments would cause permanent losses for affected pensioners.
Government and budget measure
The measure would reduce public spending by €1.4 billion a year.
Policy
Cida and other opponents
Cida calls for Article 55 of the budget plan to be removed.
Government and budget measure
The budget plan introduces tighter limits on pension adjustments.
The period of missed pension adjustments cited in Cida’s calculations began.
Cida estimates that a pension of €10,000 gross per month would lose another €3,029 under its assumptions.
Corriere della Sera published the report on Cida’s estimates and its call to remove Article 55.
- Cida estimate
- About €178,000 lost over 14 years for a €10,000 gross monthly pension
- 2027 additional loss
- €3,029 for a €10,000 gross monthly pension, according to Cida
- Affected pensions
- Above four times the minimum, about €1,850 net per month
- Annual public spending reduction
- €1.4 billion
- Cida calculation assumptions
- 100% adjustment and 3.4% inflation
What people are saying
impoverishment
priorities