Who starts working in Italy now will retire at 71 years of age, or on average about 9 years later than those who retire today from active life, thanks to the “different options available” that allow them to retire on average at 61.8 years.
The average of the OECD countries for the entry into retirement age of young people entering the labor market today stands at 66 years old. To say it is the relationship Pensions at a glance 2021 of the OECD.
Pensions, what the OECD report says
In Italy “the provision of relatively high benefits to young retirees puts public pension expenditure in place in second place among the highest of the OECD countries, equal to 15.4% of GDP in 2019 ″ underlines the OECD. The fact is, explains the organization, that “the different options available to retire before the statutory retirement age they lower the average age of exit from the labor market, on average equal to 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 equivalent to one of the highest reports of the OECD. Over the past 20 years, employment growth, including through longer careers, has offset more than half of the pressure of aging on pension spending in Italy. Nonetheless, the latter increased by 2.2% of GDP between 2000 and 2017. For Italy the increase in employment continues to be of crucial importance, particularly in the older age groups “.
Pensions, who will leave work at age 71
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 early, the report emerges.
Italy is among the seven OECD countries that link the statutory retirement age to life expectancy. In a contributory scheme such a link is not necessary to improve retirement finances, but aims at prevent people from retiring too early with too low pensions and to promote employment at a later age. In Italy, the future normal retirement age requirement is among the highest at 71 years of age, as are Denmark (74 years), Estonia (71 years) and the Netherlands (71 years), against an OECD average of 66. years for the generation that is now entering the job market.
“In Italy and in these other countries – continues the OECD – all life expectancy improvements they are automatically integrated into the retirement age. Alternatively, Finland and the Netherlands report two thirds of the improvements in life expectancy at retirement age ”. On the other hand, today “the various options available to retire before the statutory retirement age lower the average age of leaving the labor market, equal to an average of 61.8 years against the 63.1 years of the OECD average”.
Pensions, the average income of over 65s
As for the average income of over 65 in Italy is similar to that of the total population, but it is “12% lower on average compared to the OECD area and 15% compared to Italy 20 years ago “. However, the organization notes, “income inequality and relative income poverty rate among the elderly have aligned with the median value of OECD countries, following the notable decline in the poverty rate in old age recorded in Italy in recent decades “. During the crisis caused by Covid-19, in Italy “pensions have not decreased and pension rights have continued to fully mature also for workers in layoffs, in a similar way to what happened for other OECD countries “.