The funded pension system existing in many European countries is in a deep crisis. The Apennine state is no exception. Although a pension in Italy currently allows older people to live more or less with dignity, in a couple of decades, without undergoing changes, it will not be able to cope with this task. The situation is not made easier by the use of quotas and mixed types of calculation of this state aid.
General information
The Italian pension system dates back to 1898. Then the National Insurance Fund for Aging and Disability of Industrial Workers was created. This society received contributions from the owners of plants and factories, as well as from the state.
Since 1919, these contributions acquired the status of mandatory, and in 1933 the fund received a new name - the National Institute of Social Security. After some time, pension payments were introduced in connection with the acquisition of occupational diseases and the loss of a breadwinner, and the age for workers to retire was lowered. In addition, the amount of minimum payments based on length of service was established.
In 1995, reforms were carried out in the pension system. They determined the age at which retirement is allowed in Italy and the methodology for calculating the amount of benefits depending on the total amount of contributions to the Pension Fund (hereinafter referred to as the Pension Fund). And from the beginning of 2021, pensions began to be calculated according to new rules.
Calculation procedure
Depending on the stage of development of the state, the size of the pension is set according to different formulas. Thus, there are three methods for calculating pension payments:
- method retributivo;
- contributivo formula;
- mixed type of calculations.
The first system still calculates pensions for citizens of the Italian Republic who paid tax contributions for at least 18 years before 1995.
If the work experience is less than 18 years before 1995, then the above 2 systems are used for calculation. To calculate benefits for residents who started working and paying social contributions after January 1, 1996, only “Contributivo” will be used.
The Contributivo system implies deductions from wages in the amount of 33% annually. The Retributivo system implies deductions of 58%.
At the same time, annually, depending on the amount of the official salary, deductions are made, which are transferred to the savings account of each individual payer. Upon reaching retirement age, the entire amount collected is used for regular payments to the pensioner.
Pension amount
According to the laws, the minimum pension in Italy in 2021 should be 1.5 times the social benefit. For the month of January, its size is 458 euros, that is, the pension should not be less than 687 euros .
However, the latest pension reform established a higher minimum payment - 780 euros . Thus, the state wants to protect those below the poverty line.
In general, the size of the monthly pension in Italy is influenced by a number of factors: length of service, salary, region. On average, pensioners across the country receive about 1,200 euros , which in rubles is about 89,000.
Disability pension payments
Disability pension amounts:
- For hospitalized people with blindness – 279 euros.
- Not for hospitalized people with blindness – 301 euros.
- For people with partial blindness – 200 euros.
- For the deaf – 251 euros.
- For people with complete disabilities – 279 euros.
- For people with partial disabilities – 279 euros.
Survivor's pension
The following may receive survivor benefits:
- Spouses (husband or wife). But it is worth remembering that only official spouses have the right to claim a pension payment. If people lived in a civil marriage, then they will not be able to receive a pension.
- Minor children.
- Parents. They can apply only if there are no direct heirs - spouse and children. Parents are also entitled to a payment if their age is over 65 years.
- Brothers or sisters. Only incapacitated individuals who are dependent on the deceased, who did not have children, a spouse or parents, have the right to claim payments.
Who receives social pension
Not only the elderly, but also the poor and the unemployed can count on receiving a social pension of 780 euros. According to the latest statistics, over 5 million people live below the poverty line in Italy. In this case, the amount of payments will depend on the number of family members and their income level.
For example, a single unemployed person can expect to receive 780 euros. In cases where a person works, but his income is 500 euros, the state will pay him an additional 280 euros. In cases of the unemployed, the payment of social pension is limited to a period of 1.5 years.
Moreover, before receiving it, an agreement must be signed, which obliges you to register with the employment service or take retraining courses. All vacancies offered by the employment service must meet certain requirements.
The work must be located no further than 100 km from the place of residence or within a 100-minute drive. After two or more refusals of possible vacancies, work may be offered in any region of the country. After 1.5 years, according to the signed agreement, the unemployed is obliged to get a job.
Types of pensions in Italy
In Italy there are two types of pensions:
- Social pensions - state assistance to the needy and socially vulnerable: pensions for elderly people without income;
- payments to low-income families;
- disability pensions.
- by old age;
These payments depend on many factors, which will be discussed below.
Features of the pension system
1. Labor - deserved during labor activity:
- by length of service;
- by old age;
- according to the results of the interstate convention between the Republic of India and other countries within the framework of mutual offset of work experience worked in different countries;
- supplements to old-age payments.
2. Social benefits involve the provision of benefits to those who have problems obtaining sufficient income to live on.
- by old age;
- on disability;
- due to the loss of a breadwinner;
- payments to low-income families;
- payments to elderly people with low incomes.
The size of the pension in Italy depends on length of service, profession, salary. Minimum 700 €.
The average is 1200 €. The maximum is limited to 15,000 €, such payments are provided only for government employees.
Italy is a country with a high life expectancy (80-90 years), which increases every year. Therefore, the retirement age in Italy is dynamic (it changes upward every year). Before the reform of the pension code, which the government carried out on January 1, 2012, women and men had the right to apply for retirement only upon reaching the specified retirement age (old age). Today, this method is no longer considered absolute, since the country has introduced the possibility of early retirement.
Early pension (Pensione anticipata) is the opportunity to receive payments from the state earlier than the specified period. For working men, the length of service is 42 years and 10 months, and for women - 41 years and 10 months, as of 2015-2016.
The retirement age in Italy in 2021 was:
- for women who work under an employment contract - 65 years and 7 months. (for comparison, in 2021 it will already be 66 years and 7 months);
- for working men - 66 years and 7 months, subject to minimum experience (20 years);
- for self-employed women - 66 years and 1 month. (in 2021 the age will be increased to 66 years and 7 months).
An important condition for calculating a pension in Italy are insurance contributions, which a working person must pay for at least 20 years.
Retirement age in Italy
The answer to what time people retire in Italy is so far formulated as follows: people who have crossed the age mark of 66 years can retire.
In 2021, the age limit will be lowered: you will be able to retire by celebrating your 62nd birthday. But provided that the length of work experience is at least 38 years. This law, signed by Italian President Sergio Mattarella, will come into force in the spring of 2021.
Of course, such a norm contradicts the global trend. Indeed, in socially developed countries, population aging is accelerating at a rapid pace. Against this background, it would not be at all surprising if the retirement age in Italy for women and men was raised. But here everything is exactly the opposite. Moreover: the above-mentioned law contains provisions allowing women to retire early at 41 years old, and men at 42 years old.
In general, retirement time in Italy is determined by the so-called 100 quota using the following formula:
VG+TS= 100, where
VG – citizen’s age;
TS – work experience.
That is, for example, if TS = 36 years, an Italian will be able to register with the Pension Fund upon reaching 64 years of age.
According to Prime Minister Luigi Di Maio, the life of pensioners in Italy, like all other segments of the population, will only improve from the implementation of this law. The adoption of a new legal norm was initiated by a coalition government consisting of the right-wing populist Northern League and the left-wing populist Five Star Movement.
The history of the formation of the pension system in Italy
The Italian pension system has one of the richest histories not only among European countries, but throughout the world. Payments to citizens of this state who completed their working career were first introduced back in 1919. However, a pension in the sense we are familiar with today was provided to Italians during the reign of dictator Mussolini in the 30s of the last century.
After this, the system was reformed several times, and steps were taken to minimize the state's participation in the accumulation of future payments. The retirement age was changed, and the age of retirement for men and women was compared. And in 2021, the President of the Republic proudly announced that the country had once again become a truly social state in this area.
Amount of pension payments
The pension payment must exceed the social benefit by at least one and a half times. This is established by Italian law. Given the latter figure of €458, it is easy to calculate that the minimum pension in Italy should be €687. But the 2021 pension reform ensures that older people will receive a minimum of €780. Those who work for all 38 years can claim a larger amount.
Let us draw your attention to the nuances in terminology. For example, people who have never worked due to congenital or acquired disability receive not a pension, but an allowance, since they did not make contributions to the Pension Fund, on the basis of which payments are made. But we will not deviate from the usual terms: the disability pension in Italy for unemployed people is now no less than € 458.
Continuing the conversation about the “quota 100” reform: an elderly person has no right to receive a pension and at the same time work. Money is credited to a special card that can be used to pay at retail establishments. But you can only withdraw €100 in cash per month.
The reform provides that an old-age pension in Italy in the amount of € 780 is paid to a citizen whose annual salary was less than € 9,360. If this figure is higher, the amount of assistance from the state also increases. It is officially planned that this system will be implemented over the next 3 years in an experimental format.
It is not without interest what amount of government assistance can be expected at a certain level of income from work. Today, the average pension in Italy is approximately € 1,140. Compared to the average salary, this is about 93.2%.
In Russia this figure is noticeably lower:
- for men – 38.8%;
- for women – 32.9%.
According to information from the National Institute of Social Security, immigrants also make a significant contribution to maintaining the weight of pensions in the economy of the Apennine state. And the country’s legislation fully contributes to this: pensions in Italy for foreigners are provided on almost the same terms as for native residents.
But taking into account these requirements:
- the period for paying contributions to the Pension Fund is at least 5 years;
- legally reside in the country for at least 10 years;
- annual income – no more than € 5,577.
The main role in the amount of the pension is played not by length of service, but by the number and volume of contributions transferred by the foreigner to the Italian Pension Fund.
Are there payments to foreign residents?
The old-age pension from the Italian Republic and most other social benefits are not linked to citizenship of this country. Payments in connection with retirement, disability benefits, and a number of other social benefits can be provided to foreign citizens if the conditions that apply to citizens based on length of service and age are met. Regarding social benefits, a foreigner can apply for them if he has a residence permit.
Attention! Those foreigners who do not live in Italy, but during their working career in this country have accumulated a sufficient amount of work experience and made the required number of contributions to the social fund, can also apply for an Italian pension.
Thus, Italian pension legislation allows us to call this state truly social. Here, a citizen cannot receive an income lower than the state-guaranteed 780 euros per month, and the pension is fully inherited as social benefits or as an inheritance estate in our understanding.
Features of registration of a Russian pension
Elderly people who moved to Italy can continue to receive a Russian pension. Providing such an opportunity is the prerogative of the Pension Fund of the Russian Federation. Therefore, you should contact its Department on issues related to pension provision for persons living abroad.
How is the pension paid?
Transferring a pension from Russia to Italy requires the citizen who moved for permanent residence to submit the following documents to the National Institute of Social Security:
- statements;
- copies of Russian passport;
- copies of SNILS;
- original or copy of the work book;
- salary certificates for any consecutive 60 months of work on the territory of the Russian Federation and the USSR, as well as states with which relevant international agreements are in force;
- copies of military ID;
You will also need to provide a residence permit in Italy for pensioners who moved to live on the Apennine Peninsula. Wealthy elderly people draw up this document on a general basis, confirming an annual income of at least € 31 thousand and the availability of acceptable housing.
Another option for a pensioner to obtain a residence permit in Italy is family reunification. It is clear that this is only possible if one of the close relatives already lives in the Apennines.
Getting a pension in Italy will not be difficult. Having a residence permit, a Russian can send a request to the Pension Fund of the Russian Federation six months before departure for payment of the amount due for 6 months. Upon arrival in Italy, you will need to register with the Russian consulate and take documents there:
- certificate of residence in the country. It must indicate the departure date;
- certificate of being alive. It will need to be submitted to the Pension Fund of the Russian Federation annually.
After this, you can contact local authorities for cash payments. Even if the citizenship is changed, no one will deprive the migrant of his Russian pension.
The devil will break his leg
However, there are many exceptions and additions in pension legislation, both regarding age and cash payments. It is difficult for an uninitiated person to understand the legal intricacies.
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For example, the minimum work experience is 20 years. But if an Italian has worked for more than 38 years (values and conditions for different categories of citizens may differ), then he has the right to retire early at age 62. But in this case, they will lose money, so most try to finish it to the end.
There are other options. For example, early exit after 42 years of service for men and 41 years for women.
However, in most cases there are no special gradations for civilian professions. It doesn't matter whether you worked in a factory, in a pizzeria, or as a housewife. You heard right - if you pay into a pension fund, farming is also considered a worthy occupation.
Pensioners from Russia in Italy
To understand how pensioners live in Italy, it is enough to study reviews on online forums on relevant topics. Below are just some of the benefits of moving older people from Russia to the Apennines:
- Higher standard of healthcare and life in general.
- A portion of the interest paid on the mortgage loan is refundable. Moreover, the amount is considerable. Almost a fifth, or more precisely, 19% of the total interest payments made.
- If the pensioner passes away, 60% of his pension will be paid monthly to his spouse.
- A pensioner with a disability can apply for assistenza sociale - a subsidy of € 500 to pay for the services of a person providing assistance at home. For example, when problems with the musculoskeletal system make it difficult to move around the apartment.
- For the first 5 years from the date of moving to Italy, it is allowed not to indicate investments and foreign activities in annual income tax returns.
- If you wish to return to your homeland, the right to receive an Italian pension is not lost.
Where is the best place for Russian pensioners to live in Italy?
Regardless of what pension in Italy is accrued to a person from Russia, Sardinia and Tuscany are the most popular among older migrants. Sunny Sardinia (300 clear days a year) is one of the healthiest regions. Tuscany is famous for its rich cultural heritage and beautiful nature.
Villas by the sea in Sardinia cost from 1 million, and houses - from 300 to 800 thousand euros. Buying an apartment in Tuscany near the sea coast will cost 300–400 thousand euros, and the price of a building in rural areas fluctuates around 350 thousand.
A more economical option is to purchase real estate on the Adriatic Sea in the Marche region. Housing prices in rural areas are approximately 175 thousand euros, while on the coast - from 350 thousand. You can find cheaper apartments near the beach - somewhere in the range of 130-150 thousand euros.
Deputy Prime Minister of Italy, Mr. Matteo Salvini, announced the government’s plans to create a “tax paradise” for pensioners in the south of the country – in Calabria, Sardinia and Sicily. Native citizens and elderly foreigners who move to these regions will be exempt from income tax for 10 years
In Italy the cost of living is cheaper than in Spain and France, especially in the southern provinces and rural areas. A year of residence costs approximately 23–29 thousand euros.
Many pensioners who moved to this country, despite their advanced age, begin a new life: they visit museums, where they admire paintings by Renaissance artists, and take part in wine tasting.
