Italy retirement planning faces longevity risks and rising costs

Financial planning for retirement in Italy faces challenges due to longevity risks and rising costs for university degree redemption. Actuarial data suggests that individuals receiving pensions tend to live longer than the general population average, meaning standard 30-year financial simulations may be insufficient for many. Planning for longer horizons is critical to account for inflation, changing needs, and the sequence of investment returns.

Additionally, the cost of redeeming university years to qualify for earlier retirement may increase in 2027. Based on a projected 2.9% increase in the contributory minimum used by INPS, the cost per year of study could rise by approximately 180 euros. For a person redeeming a five-year degree, this could result in an additional expense of roughly 900 euros compared to 2026 rates.