Italy pension reforms: lower benefits and later retirement from 2027

Starting January 1, 2027, Italian workers will face higher retirement age requirements and lower pension benefits due to updated transformation coefficients. A decree from the Ministries of Labour and Economy, based on demographic data and increased life expectancy, will adjust the percentages used to convert accumulated contributions into monthly pensions.

For those retiring at 67, the coefficient will drop from 5.608% to 5.514%. The reform also increases retirement age requirements by one month; old-age pension eligibility will rise to 67 years and one month. For early retirement, requirements will shift to 42 years and one month of contributions for men, and 41 years and 11 months for women. Further increases are expected in 2028.

These changes specifically impact the contributory system and do not affect pensions already being paid. The adjustments aim to ensure that accumulated pension funds can cover the longer life expectancy of retirees.