Rome – Starting in 2027, both the eligibility requirements and the calculation of the contribution-based portion will change for new pensions in Italy. The standard retirement age will initially rise to 67 years and one month. At the same time, new conversion factors will apply for 2027 and 2028: for the same age and the same accumulated contribution capital, the resulting pension amount will be lower. Pensions already in payment will not be retroactively reduced as a result.
These factors convert the contribution capital accumulated and increased over the course of a person’s working life into an annual pension. They are regularly adjusted to reflect changes in life expectancy. If the expected duration of benefits increases, the same capital must be spread over a longer period. The annual payment amount decreases accordingly.
For a pension start date at exactly age 67, the factor drops from the previous 5.608 to 5.514 percent. With the capital amount remaining unchanged, this corresponds to a decrease in the affected pension portion of approximately 1.68 percent. This comparative calculation explicitly keeps the age constant. Anyone who actually retires later or makes additional contributions will thereby also change the basis for calculation.
Pensions in Italy: New Factors Affect the Contribution Rate
The change primarily affects insured persons whose total pension is calculated under the contribution-based system, particularly those whose insurance coverage began in 1996 or later. For pensions calculated using a mixed method, only the corresponding contribution portion is adjusted using the new factor. This does not imply a general reduction in all pensions, nor does it result in a fixed loss amount for each insured person.
The second change concerns the eligibility requirements for retirement. Following the additional month next year, the standard retirement age will rise to 67 years and three months in 2028. To qualify for a standard early retirement pension in 2027, men generally need 42 years and 11 months of contributions, while women need one year less. In the following year, these thresholds will each increase by an additional two months. There are legally mandated exceptions for certain employees engaged in particularly strenuous work.
The new conversion rate and the longer contribution period thus work together, but they are different mechanisms. Whether a specific new pension will actually be lower than what would have been possible if it had started earlier depends not only on these factors but also on age, additional contributions, and the individual’s insurance history.
