Italy’s pension spending hits record high

INPS said that public spending on pensions is expected to reach 289.35 billion euros this year, 15.3% of GDP.

The pensions-and-social-security agency told a parliamentary hearing on the 'demographic transition', with Italy's population ageing and its birth-rate declining, that this year the number of people claiming pensions will be 76.4% of the number in employment, CE Report quotes ANSA.

It said the pension expenditure in relation to GDP will go up to 15.7% by 2030 and to 17.1% in 2040, before dropping to 16% in 2050 and 14.1% in 2060 and then "remaining rather stable for the following decade".

INPS said that, on the basis of estimates by national statistics agency INPS, life-expectancy at 65 in Italy has risen to 21.2 years, which, according to a mechanism linking the retirement age to life expectancy, would lead to a three-month rise in the age at which people can start claiming their State pension as of 2027.

The retirement age is currently 67.

INPS representatives stressed, however, that the economy ministry must pass a decree by the end of this year for this increase to kick in.

They also said that, while the situation should be monitored, there is no reason to think that Italy's pension system is unsustainable.