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Italy Plans Two-Step, Targeted Curb to 2027 Pension-Age Rise

Fiscal limits drive a selective, two-step approach rather than a universal freeze.

Overview

  • Under the Fornero mechanism tied to Istat longevity, the statutory retirement age is set to move to 67 years and 3 months in 2027.
  • Government signals and a majority resolution indicate a phased attenuation: one month of the three-month increase would be neutralized in 2027 and another in 2028, with relief centered on arduous jobs and early entrants.
  • Technical options under review include shielding those already 64, confining relief to specific categories, or spreading the rise more gradually, with details and eligibility still being negotiated.
  • The Treasury’s accounting office estimates the three-month adjustment at about €3 billion a year at regime, while scenarios with a 64-year cutoff are pegged around €1.5–2 billion over 2027–2028.
  • A full freeze is off the table given Ragioneria warnings that it would lift debt-to-GDP by roughly 15 points by 2045 and about 30 by 2070, as the budget also weighs prorogues of Opzione Donna, Quota 103 and Ape sociale plus a push for stronger complementary pensions.