Italy is an increasingly old country where, according to ISTAT, the over 75s represent 22% of residents and social security assumes a primary value. But in this context, speaking only of pensions would be simplistic without also taking into account the universe of residential structures where the elderly are often welcomed, often at a high price.
Assoprevidenza and Itinenari Previdenziali have produced an in-depth Notebook which highlights how tuition fees are often unsustainable.
To date, the need for assistance linked to the aging of the population can become a real opportunity for the national economic system within which to experiment with new forms of public-private investment, especially through partnerships with institutional investors, such as pension funds and private pension funds.
The aforementioned partnership, according to the study, has now become undeferrable. There are essentially two reasons: the first is the total lack of coverage for incapacity (Long Term Care), which is essential for elderly people and which cannot be covered by the NHS; the second are the average amounts of pensions paid by INPS and professional funds. Out of 16,259 million pensioners, 7 million receive checks that do not exceed 1.000 euros gross; another 4 million arrive at 1.500 euros gross (just over a thousand net per month); even the remaining 2,5 million do not exceed 2.000 euros gross per month.
Figures that obviously cannot cover the daily costs of residential facilities for the elderly which range from 106 to 233 euros per day between the "hotel quota for families and the public health quota.
Although the public system bears 51% of the expenditure, the share paid by the elderly varies from 1.500 to 3.400 euros per month. A figure that is impossible for the vast majority of retirees to bear.
So what is the solution? According to the study by Assoprevidenza and Itinerari Previdenziali, there are only two ways to go: immediately introduce compulsory LTC coverage, which makes it possible to double the pension annuity when non-self-sufficiency arises (perhaps providing for intermediate supplements correlated to levels of need); but also to combine social and business through the market, establishing direct or indirect investments in these structures. A mechanism that presents advantages both for the entities managing pension schemes, and a way to increase pensions by asking for higher contributions, while offering services and favorable conditions at the same time.
"It does not often happen that business combines with social: this is one of the rare favorable «astral conjunctions» that would be worth following, even at a brisk pace", claims Alberto Brambilla, President of the Social Security Itineraries Study and Research Centre, who adds that “solutions need to be found immediately to bridge the gap between the cost of tuition fees and pension annuities. Perhaps looking abroad, where in some countries the LTC is already compulsory, such as in Germany, for example”.
"The importance of the synergies that can be achieved with health funds and insurance funds cannot be overlooked - observes Sergio Corbello, President of Assoprevidenza - in order to improve the "social" coverage offered, in a situation of available resources such as the current one, which requires action from a perspective of integrated welfare. The development of the sector, moreover, has undeniable potential in terms of employment, since it determines the creation of jobs which certainly cannot be relocated and cannot be easily replaced with technology, however advanced it may be”.
