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Italy Weighs Tfr-Funded Retirement at 64 as INPS Confirms Lower Yields for Some Public Exits

Tight EU spending limits leave the plans uncertain, with unions opposing the use of workers’ Tfr.

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Overview

  • Undersecretary Claudio Durigon proposes a voluntary option to convert Tfr held at INPS into a monthly annuity to reach the three-times assegno sociale threshold and retire at 64.
  • The plan would extend the 64-year channel to mixed-system workers, require at least 25 years of contributions if Tfr is used, and apply favorable taxation similar to complementary pensions.
  • INPS message No. 2491 clarifies that newer, lower rendimento aliquote apply to many public employees who resign between ages 65 and 67, affecting Cpdel, Cps, Cpi and Cpug members.
  • Government figures signal a freeze of the automatic three‑month pension-age rise scheduled for 2027 and the likely confirmation of the Bonus Giorgetti, while Quota 103 is seen as unlikely to continue and Opzione Donna may be revised.
  • All measures await Ragioneria verification and budget cover within a 1.6% cap on net primary spending, as parties float IRPEF cuts to 33% up to €60,000, renewed bill relief, and detaxation of overtime, with reporting citing Tfr flows of roughly €6.8 billion annually.