Italian workers may now have more flexible options for retirement, with recent amendments to the pension law permitting early retirement at age 64. This change, introduced as part of the 2025 budget legislation, allows those eligible to combine their mandatory pension entitlements with supplemental pension funds.
To qualify for this early retirement option, workers must have at least 20 years of contributions within the mandatory pension system, increasing to 25 years starting 2025, and 30 years by 2030. The total monthly pension must reach at least three times the social allowance, which currently amounts to approximately 534.41 euros.
According to the Italian government's proposal, under this new rule, individuals can access their complementary pension funds to reach the necessary threshold, marking the first time such flexibility has been permitted. Historically, only mandatory pension contributions counted toward retirement eligibility. This shift is part of the government's attempt to fulfill pledges to improve retirement conditions and offer more exit options for workers.
Claudio Durigon, Undersecretary for Labor from the Lega party, endorsed the amendment, claiming it encourages retirement flexibility and responds to the growing concern about low pensions. Durigon stated, “For the first time, Italian pension law will allow the combination of mandatory and complementary pensions to secure benefits equal to three times the minimum allowance, enabling retirement at 64.”
While proponents of the legislation praise this as progress, labor unions express significant concern over its potential consequences. Lara Ghiglione, the secretary general of the CGIL union, criticized the amendment as insufficiently addressing structural inequalities within the pension system. “Instead of removing the unreachable pension thresholds, the government offers alternative routes which will only exacerbate the existing problems,” stated Ghiglione.
Ghiglione highlighted the challenge of meet eligibility criteria, particularly for those who have only worked part-time or have had uneven career paths. Many would not accumulate the necessary years of contributions due to existing labor market conditions, which often include low wages and job instability. For example, approximately 4 million part-time workers, mostly women, could find themselves unable to retire until reaching the age of 71, even with 40 years of contributions.
Despite half-hearted praise for the reform, the perception remains among labor activists and opponents of the ruling government faction, who believe efforts merely create the illusion of support for workers rather than addressing compliance with safety-net provisions.
Critics also argue this change is part of broader attempts to salvage the government’s reputation following unfulfilled campaign promises to abolish the Fornero Law, which has governed Italian pension frameworks for over six years. Highlights also include modifications to pension eligibility through amendments to the original pension scheme formatting. The 2025 budget iterations demonstrate continuity with the Fornero Law, rather than the sweeping reform many workers hoped would materialize.
The legislative changes spark varying opinions from labor representatives and experts. Some believe it marks the beginning of necessary reforms for greater flexibility, allowing workers to make more adaptive retirement plans, particularly as demographic shifts challenge the sustainability of national pension programs.
With only minimal adjustments to work regulations on the horizon, the social safety net remains tenuous for many retirees and future pensioners. Advocates plead for urgent, structural changes targeting the root problems of pension inequality, focusing on the urgent need to improve wages and terms for those often relegated to precarious employment conditions.
While this legislation arrives amid other proposed changes to the pension framework, such as the prolonged appraisals for certain retirement qualifications, it remains contingent on implementations expected over several years. The outcomes of these amendments won't be fully realized until the effects cascade down to the working populace and influence their aspirations for retirement.
Moving forward, stakeholders will continue to monitor the ramifications of these changes—not just for current retirees but for future workers, as they navigate increasingly complex pathways toward retirement. With heightened expectations for policy adherence and improved conditions, many await to see if these legislative moves genuinely pave the way for more equitable transitions to retirement or merely serve cosmetic changes to longstanding, problematic legislation.
