It will not have escaped you that we have entered the electoral campaign. Italy would need a serious debate on many fronts related to growth, but in the end the electoral challenge always focuses on the same issues: Europe, immigration e pensions. And it is precisely on this last point that an important piece of the financial future of our country will be played out.
In the coming months we will hear some good things on this front, unfortunately the debate is spoiled by empty words, without the support of data.
So if our politicians don't argue, we do:
1 – We retire later than other European citizens – FALSE
In theory yes, this should be the case because current legislation provides for men to retire at 67 and women at 66. But over the years the Government has introduced numerous forms of flexibility which have reduced the effective retirement age. To date, according to OECD calculations, the effective retirement age is around 62, well below the average for countries that are members of the Organization for Economic Co-operation and Development.
2 – We spend less on pensions than other countries – FALSE
Not so true: from many points of view, our country is among the most generous. In Europe we are among the countries that spend the most both in terms of gross domestic product (GDP) and in terms of per capita income.
3 – Italian pension checks are the lowest – FALSE
Unfortunately, pension payments are in line with the national economy. On average, an employee receives a retirement allowance equal to 703 euros. With a figure like this, making ends meet is not easy. However, pension benefits in Italy are in line with the average salary received during a working life, and Italy's pension provision is significantly more generous than the OECD average.
4 – The latest reforms have secured the pension system – TRUE and FALSE
More or less. The recent reforms of the pension system have helped to improve long-term financial sustainability, but they cannot work miracles: Italy will continue to have a pension expenditure higher than the European average.
THE BLANKET IS SHORT
With the exception of a few privileged categories, overall Italians retire earlier and with a salary all in all in line with our economy. And it is precisely on this point that we should invest: employment and economic growth. Unfortunately, too often we forget that our inability to generate income is inevitably reflected in a meager retirement.
Right now, not having infinite resources, if you decide to lower the retirement age or increase retirement salaries without taking any countermeasures, you end up taking resources away from other parties or causing a future tax increase. Sooner or later we will have to deal with these numbers, and the markets know it. Italian politicians less, or they pretend not to know.
Source: Advise Only
