Because the state pension is no longer enough
Who today is between 50 and 60 years old grew up in a world in which it was considered obvious that at the end of one’s working career one could comfortably retire, thanks topension allowance by the state. In the meantime, however, the world has changed profoundly and especially in recent years there has been a sharp decline in births. The (still provisional) budget of 2021 speaks of 12,500 fewer births than in 2020, when the happy events were 404,892, which in any case already represented a decrease of 15,000 units compared to 2019. When these children will become young adults and enter the world of work , will have to take care of the 18 million compatriots born in the twenty years between 1955 and 1975 (not surprisingly, we are talking about “Baby boomer”). In 2050, there will be fewer than two adults of working age for every pensioner, as it places Italy above the EU average, with only Portugal and Greece showing worse numbers.
Live to be 100 and work to be 70?
Despite the slaughter caused by Covid-19, which caused victims especially among the elderly, the population has progressively aged. The weight of pensions on GDP has grown exponentially and in 2020 it reached a record level of 14.53%. For the final balance of 2021, a slight decrease is expected (14.02%), which in any case is far above the levels of the beginning of the millennium (10.65% in 2000). The forecasts for the future foresee a further one raising the average age, also linked to migratory flows. For this reason, the fears of those in their fifties and sixties who are starting to think about their post-work future are fully understandable: they will live longer and therefore they will have to work more, but until when?
How many pensioners are there in Italy?
Currently, pension recipients are 26.62% of the resident population: 16 million, of which 8.3 million women and 7.7 million men. Here there is also a profound social injustice, since women, despite being in greater numbers, receive 44% of the total funds, compared to 56% of men. The individual levels of benefit depend on the system by which the pension is calculated, which can be salary (i.e. based on the last salary received at work) or contributory (based on the contributions actually paid). This system, however not new, represents the greatest guarantee for the public purse and will certainly be the main road in the near future as well, as clearly explained by the Government.
What will happen to me in the next few years?
For those who start worrying about their future (such as those in the 50/60 age range), the first step to take is to be clear about their situation. This can be done through the various accountants and consultants who offer this service, which was previously carried out byInps through the famous “orange envelope” wanted by Tito Boeri, but then not confirmed by subsequent management. Once their pension fate has been clarified, everyone can make the best choices in their own interests, but it is a fact common to many that, if the public allowance is likely to be no longer enough, it is necessary to add a private supplementary pension or investments that guarantee constant returns over time. Obviously, the sooner your position is clarified, the more time is available to improve it.
Pensions, cuts up to 35% with the contribution: what will change in 2022
Recalculating the entire pension with the contributory contribution would result in a net loss of between 20 and 130 thousand euros from leaving at 82 years. The government plan was baptized All option and will provide for the exit of work at a minimum age of 62-63 years. Woman option it was proposed until 31/12/22 but with an average cut in the social security contribution of 6% for employees and 13% for self-employed women. However, the recalculation of the all-contributory pension would lead to a loss of between 20 and 30% of the allowance, or between 20 thousand and 130 thousand euros of lower income from leaving to 82 years, the current goal of average life. These simulations were carried out by the CGIL in view of the social security table convened by Prime Minister Draghi. “Let’s see if there is really the will of the government to start a debate and not just a listening to overcome the rigidity of the Fornero law”, he says. Roberto Ghiselli, Cgil confederal secretary and social security manager.
How will pensions be revalued in 2022?
There are also retirees who can celebrate the good news instead. From January 1, 2022 pensions up to four times the minimum (i.e. up to 2,062 euros) will have an equalization with respect to inflation of 100% (+ 1.7%) higher allowances will enjoy a recovery with respect to the 90% price increase and then 75%. The minimum treatment today equal to 515.58 euros per month will pass to 524.34 euros. Those who receive a gross annual pension of 5,000.00 euros with the new system will have a benefit of 29.75 euros monthly (over 380 per year). A pension allowance of 1000 euros (less than 4 times the minimum treatment) will have a revaluation of 1.7% and will rise to 1017. One of 1500 will rise to around 15.25, those with 2000 euros will increase to 2034. While a pension from 2,500 euros per month (between 4 and 5 times the minimum treatment) will have a revaluation rate of 1.53% passing to 2,534 euros. And so on, taking into account that pensions between 3 and 5 thousand euros will enjoy a revaluation rate of 1.275% (therefore it should be: from 3 thousand and 3.48, from 4 thousand to 4,061, from 5 thousand to 5,073). It should be emphasized that the amounts of pensions are provisional, i.e. they refer to inflation measured over the first 9 months of the year. In January 2023, INPS will pass the verification with the final value ISTAT for the whole of 2021 and any adjustment.
#retire