How to retire in Italy

Retire to Italy In general, in Italy, when we speak in a generic way about retirement, we need to subdivide it into various types that exist today. More precisely, normally the legal system defined by a legal age fixed by law, in the presence of a contribution normally not less than 20 years. So let’s see how to retire in Italy and what its various subdivisions are. 

THE OLD AGE PENSION 

The peculiarity of the old-age pension is therefore a not excessively serious contributory requirement – 20 years precisely – a front of a much more stringent registry requirement: the so-called retirement age for 2020 is set at 67 years (therefore stable compared to 2019 , +5 months compared to 2018) for all categories of workers, i.e. men and women, employees and self-employed. It is therefore evident that in order to obtain recognition of the social security contribution in order to be maintained over time, the system provides for some elements of stabilization, also introduced to allow it to withstand the ongoing demographic changes and, in particular, the progressive aging of the population. In this sense, it is important that the retirement age required to be subject to periodic adjustments, by virtue of what is called “life expectancy”.

 If life expectancy increases, the personal data threshold to be reached in order to access the old-age pension also increases. More specifically, starting from last year we adapt every two years (previously it was three years instead): this means that the next adjustment of the requirements is expected for the 2021-2022 period. With the decree of 5 November 2019, the MEF has already established on the basis of the Istat surveys on the average life expectancy, that the registry requirement for the old-age pension will remain firm at 67 years also for the two-year period 2021-2022. On the other hand, as regards the contributions considered, it is worth pointing out that, for the purposes of reaching 20 years of age, the contribution paid or credited in favor of the insured is valid: that is to say, work contributions are also considered “considered” , redemption, figurative and voluntary payments.

THE PENSION OF SENIORITY 

The retirement pension as we once understood it (35 years of contributions and last year’s requirement equal to 62 years or 40 years of contributions) no longer applies. If it was once considered to allow the employee who had reached a specific seniority to retire regardless of age, the approach has changed since 2004. This through the introduction of additional requirements with respect to the contribution one and therefore completely “retired”. The novelty was introduced with the Monti-Fornero reform which replaced it in practice with early retirement. In fact, it allows the worker to retire before the age threshold set by the old-age pension for a certain number of contributions. All through targeted legislative measures, however, some insured persons were “safeguarded” who, considered in the position to still have to be protected by the social security system, were able exceptionally to retain access to the pension with the rules prior to Fornero.

 ADVANCE PENSION

 Introduced by the Monti-Fornero reform, it can – by simplifying – be defined as that social security benefit that can be accessed not by reaching a certain age, but by perfecting a contributory requirement. This means that it is becoming possible for many workers to apply for a pension before the 67 years required by the old-age pension (hence the name “advance”), provided that they have accumulated a certain number of contributions.

THE ADVANCED CONTRIBUTION PENSION

 A different case in its own right then concerns once again the “pure contributors”, for whom an additional option is possible, represented by the contributory advance pension. In addition to being able to obtain the pension upon completion of the 42 years of age (41 for women) and 10 months required, workers who opened their contributory position after 31 December 1995 have the possibility of obtaining early treatment upon completion 64 years of age, the latter requirement subject to adjustment to life expectancy?

There are two additional conditions which must however be met: at least 20 years of credited effective contributions (for the purposes of the calculation, that is to say, only compulsory, voluntary or redemption contributions are considered valid, while, for example, the contributions credited figuratively for unemployment, illness and / or equivalent benefits are “rejected”); have accrued a pension allowance of a monthly amount equal to or greater than 2.8 times that of the social allowance (459.83 euros x 2.8 = 1,287.52 euros for 2020). The treatment starts in this case without any window.