The inflation bomb on pensions: what is happening

The government wants to protect the purchasing power of those who receive a pension and bear an increase of 20 billion euros, 9 of which will fall on the expenses of 2023. The indexing system in brackets, which returned to vogue this year, wants to allow the absorption of inflation, calculated in the Economics and Finance document (Def) at 5.8% while the latest Istat estimates go up to 7.3%.

This economic and financial decision-making protects pensions, according to different indexing logics, allowing the recovery of the expensive life regardless of the size of the allowance.

The calculations of the Parliamentary Budget Office and INPS

The Parliamentary Budget Office (upB) and INPS have presented a dossier according to which the indexation of pensions to inflation would cost the State 9 billion more in 2023 and, in the absence of a slowdown in consumer prices, they could grow to just under 16 billion in the course of 2024 to exceed 20.6 billion in 2025.

A cost of all importance and INPS, which at the end of 2001 had a capital deficit of 904 million euros, is trying to formulate hypotheses for the efficiency of the pension system.

The first frailties taken into consideration concern Quota 100. The 62-year-old and 38-year-old path sponsored by the 5 Star Movement and the League met with the favor of 380 thousand workers against the estimated 678 thousand (45%) made it possible to save about 10 billion euros (33 billion allocated, 23 about billion spent) which, by virtue of a definitive loan that has already taken place, have in the meantime become just under six billion. A digit that can be assigned to one pension system reform which the country, numbers in hand, needs.

The options according to INPS

The INPS president, Pasquale Tridico, points out three possible reforms. The first is Quota 41, retirement after 41 years of contributions regardless of the age of the worker. A reform that would cost 18 billion euros in the first three years.

The second reform, whose cost would be 6 billion during the first three years from its entry into force, sees retirement at 64 years with 35 years of contributions. The pension allowance would be at least 2.2 the minimum.

The least expensive way for the INPS coffers is that of retirement at 63 after at least 20 years of contributions. A system that provides for payment in two distinct phases: according to the contribution rate at 63 years and with the salary at 67 years. The check would be 1.2 times the minimum and the cost to the state would be around 3.5 billion.

The article is in Italian

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