Italians are heavily reliant on the state pension to fund their retirement
Strong financial support for the family may have unintended consequences
A government-led education and communication campaign is urgently needed
The role of workplace and private pensions is growing across the world.
In Italy, reforms are already underway that mean the generous first pillar state pension will not remain the same forever. This means individuals will carry greater responsibility for funding their retirement in future via second pillar pensions.
To understand how well prepared people are for their retirement, and how this compares across countries with different pension systems, we conducted a survey to get the thoughts of people both pre and post retirement.
In this report we take a look at Italian workers’ attitudes as they approach retirement, and how they feel once they have entered retirement.
Here’s a preview of a few of the findings:
Heavy reliance on the state pension
Most retired Italians rely solely on the state pension for their retirement. Only one quarter of respondents have other sources of income in retirement — 20% have income from defined contribution (DC) company pension schemes and just 5% have a source of income from a private pension.
This is quite a unique position when compared to the other countries in our survey that have mature DC pension systems — a much greater percentage of Italians are reliant on just the state pension.