Pensions, OECD: future retirement age in Italy at 71 years

Pensions in Italy, the latest news comes from the OECD Pensions at a glance 2021 report, released today. In Italy, “the granting of relatively high benefits to young retirees means that public pension spending is in second place among the highest in OECD countries, equal to 15.4% of GDP in 2019” underlines the OECD. The fact is, explains the organization, that “the various options available to retire before the statutory retirement age lower the average age of exit from the labor market, equal to an average of 61.8 years against 63, 1 years of the OECD average “. The aging of the population, the organization notes, “will be rapid and by 2050 there will be 74 people aged 65 and over for every 100 people aged between 20 and 64, which is one of the largest ratios. Over the past 20 years, employment growth, even through longer careers, has offset more than half of the aging pressure on pension spending in Italy. Nonetheless, the latter has increased by 2.2 % of GDP between 2000 and 2017. For Italy, the increase in employment continues to be of crucial importance, especially in the older age groups “. The generation that now enters the labor market in Italy will retire on average at 71 years of age, while it is now possible to retire from active life on average at 61.8 years, thanks to the “different options available” to retire in retirement. advance, emerges from the report. Italy, explains the OECD, “is among the seven OECD countries that link the statutory retirement age to life expectancy. contribution system, ed) this link is not necessary to improve retirement finances, but aims to prevent people from retiring too early with too low pensions and to promote employment at an older age. In Italy, the future age requirement ‘normal’ retirement age is among the highest at 71 years of age, such as Denmark (74 years), Estonia (71 years) and the Netherlands (71 years), against an OECD average of 66 years for the generation that accesses now to the job market “. “In Italy and in these other countries – continues the OECD – all improvements in life expectancy are automatically integrated into the retirement age. Alternatively, Finland and the Netherlands pass on two thirds of the improvements in life expectancy to the retirement age “. On the other hand, today “the various options available to retire before the statutory retirement age lower the average age of exit from the labor market, equal to an average of 61.8 years against the 63.1 years of the OECD average”.