Italy pension reform: Lega proposes retirement at 64 amid union warnings

A political debate has intensified in Italy regarding a proposal by the Lega party to allow early retirement at age 64. The initiative, supported by Undersecretary Claudio Durigon, aims to extend retirement options to workers in the mixed pension system who began working before 1996, provided they have at least 25 years of contributions.

However, the proposal faces strong opposition from the Cgil trade union. Critics argue that the plan requires a full contributory recalculation of pensions, which could lead to permanent reductions in monthly payments. Simulations by the Cgil Pension Observatory suggest that workers could see their benefits drop by approximately 10% to 10.6%, with higher earners facing even larger monthly losses.

Furthermore, the proposal suggests using the TFR (severance pay) to bridge the gap for those who do not meet the minimum required pension threshold, which is set at three times the social allowance for 2026. The Cgil has denounced this as a transfer of the reform's cost onto the workers, arguing that TFR is deferred wages and should not be used to fund public pension system deficiencies.