You were also born in 80s and 90s? Let's face it, our generation has not really been kissed by luck: as we know it is not easy to find a stable job, no one understood i our consumption needs (for now they have only given us the term Millennials) but, above all, (almost) no one tells us the great truth: for us it will be it is also very difficult to get a pension.
“People born in 1980 will have to work longer, even up to 75 years! And they will take a pension that on average will be 25% lower than that received by the generation of 1945”. The recent speech by the president of INPS, Tito Boeri, who did not mince words to draw attention to the issue of the Italian pension system, profoundly transformed by the Fornero reform of 2011, caused a sensation.
After all, the scaremongering seems justified, at least according to INPS projections, which carried out a simulation on a sample of 5.000 subjects born in 1980 assuming that in the next few years Italy will grow in line with the forecasts of the Def until 2019 and , thereafter, at a rate of 1% per year.
Well, on the basis of these calculations, those who retire in 2050 - at the age of 70 - will receive an average of 1.593 euros per month, against the 1.703 of those who retired in 2014, among other things at an average age much lower (three out of four before the age of 60).
A methodological note: the data, as regards those born in 1980, refer to male employees with career interruptions due to family reasons or unemployment: these "contribution gaps" tend to be longer for women and, as also noted OECD, directly and negatively affect retirement income.
It should also be considered that today's 35-year-olds will take their pension for less time, given that they will begin to receive it when they are older than the previous generation. Taking this aspect into account, INPS has calculated a "comparable amount", according to which the average value of today's pension is no more than 1.703 euros, but rises to 2.106 euros, i.e. a quarter more than the estimated future pension for the class 1980.
During his speech at the presentation of the report OECD "Pensions at a Glance 2015“, Boeri also highlighted how to date, on average, the incomes of pensioners have withstood the crisis better than those of workers, which is reflected in an increase in poverty among the younger sections of the population. Furthermore, with the transition to a fully contributory system, the INPS number one highlighted again, those who lose their jobs before the age of 70 after low-wage careers could face sustainability problems if support mechanisms are not introduced such as the minimum income.
The findings of the OECD are then added to Boeri's complaint. In the report presented at the end of 2015, the Organization acknowledges the progress made by Italy in reducing spending on pensions: "the rapid transition towards the national contribution system for all workers from January 2012, the increase in the retirement age and its equality between men and women will allow Italy to reduce public spending on pensions by about 2 points of GDP between now and 2060, compared to an average reduction of 0,1% in the European Union”, reads the report .
However, the road ahead is still long, the Organization points out again: just think that in Italy public pensions "absorbed 15,7% of GDP on average during the period 2010-2015, the second highest value among the countries OECD". And "some recent changes", together with low economic growth and the labor market under pressure, "could slow down the reduction in pension spending with a negative effect on its financial sustainability".
The OECD also notes that the risk of poverty in Italy has recently moved from the elderly to the young: around 15% of people aged between 18 and 25 are poor (with poverty defined as the percentage of people with incomes above below half of the median equivalent household income) compared to 9% for the over-XNUMXs (without considering the strong gap between men and women, to the detriment of the latter).
Therefore, according to the OECD report, the Italian situation has some positive aspects, but also several gray areas. Indeed, if the increase in the retirement age and the closer link between contributions and retirement income have strengthened the financial sustainability of the pension system, there is also the need to promote more complete and longer-lasting careers, as well as a better balance between work and family life to reduce inequalities in the labor market. Of course, these are objectives that are not easily achievable in the short term, and which go well beyond pension policies.
In the meantime, the advice of the OECD - and of AdviseOnly, which agrees with the exhortation - is to work on financial education, to improve individuals' knowledge of their expected retirement and the "alternative sources of retirement income available" .
In other words, we reiterate it: in order not to risk nasty surprises in the future, it would be good to protect yourself right away, where possible, by using complementary forms of social security: Pac, Pip and pension funds are words that mean something to you? As an alternative (or in addition) to these tools, there is always the possibility of opting for one of our Premium portfolios, for example the "Obiettivo Pensione" portfolio.
