Italy
Worked in Italy? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 67, with early access from 62. On totalization, Italy has bilateral totalization agreements, so the years you worked here may combine with other countries you've worked in. Below is Italy's system at a glance and what expats should check.
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Overview
Italy operates a predominantly public, pay-as-you-go pension system administered by INPS (Istituto Nazionale della Previdenza Sociale).
The system is built around a Notional Defined Contribution (NDC) framework introduced by the Dini Reform of 1995, though a transitional mixed DB/NDC calculation still applies to workers with contributions before 1996. As of 2025, more than 90% of new pensioners have their pensions calculated based on NDC rules for more than half of their careers, with full NDC application expected for all new pensioners from around 2040. Public pension expenditure stands at approximately 16% of GDP — second only to Greece in the OECD — with at least one-quarter not financed by pension contributions. The statutory retirement age is 67, with several early retirement pathways including Quota 103 (age 62 + 41 years contributions), contribution-only early retirement (42 years 10 months for men, 41 years 10 months for women), and a flexible early retirement at 64 with 25 years of contributions (NDC-only calculation). The life-expectancy link to retirement ages, suspended between 2019 and 2026, is expected to be restored from 2027, with the retirement age projected to increase by one month in 2027 and two months in 2028.
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The supplementary pension system (previdenza complementare) consists of occupational closed funds (fondi negoziali), open pension funds, and individual insurance-based plans (PIP). Participation is voluntary but incentivised through tax deductions of up to EUR 5,164.57 per year on contributions. Workers may also redirect their TFR (Trattamento di Fine Rapporto — severance pay accrual) into supplementary funds. COVIP (Commissione di Vigilanza sui Fondi Pensione) regulates the supplementary pension sector. Coverage in supplementary pensions remains limited relative to the dominant public pillar.
Italy has an extensive network of international social security agreements, including EU coordination under EC 883/2004 and bilateral totalization treaties with over 20 non-EU countries. Pensions are paid abroad via Citibank N.A. (since February 2012), with an annual proof-of-life verification requirement. Italy offers a notable 7% flat tax regime for foreign pensioners relocating to qualifying southern municipalities (population threshold raised to 30,000 as of April 2026), valid for up to 10 years.
≥70% for average earner (OECD Pensions at a Glance 2025; Italy among highest in OECD)
Pillar 1: INPS mandatory public pension (NDC/mixed DB-NDC, PAYG); Pillar 2: Fondi Pensione Negoziali/Chiusi (occupational DC, voluntary); Pillar 3: Fondi Aperti + PIP (individual/open DC, voluntary)
NDC (Notional Defined Contribution) PAYG + transitional mixed DB/NDC + voluntary supplementary (DC)
Employee
9.19% (standard; 10.19% on earnings above EUR 55,448 ceiling for executives)
Employer
~23.81% (standard private sector; total employer social security 27–32% including non-pension contributions; varies by sector and company size)
Self-Employed
24% (artisans/craftsmen); 24.48% (traders); 26.07% (professionals with VAT number in Gestione Separata, FY2025); 24% (professionals with other mandatory coverage in Gestione Separata)
Notes
Total pension contribution rate for employees under AGO (compulsory general insurance) is 33% of gross salary (employee + employer combined). Contributions capped at EUR 120,607 for workers registered after 1 January 1996. Above the cap, only minor contributions (~5%) are due by the employer only. TFR (severance pay) accrues at ~7.407% of annual salary and is paid as a lump sum on termination or can be redirected to a supplementary pension fund.
Common questions
What is the retirement age in Italy?
The full state pension age in Italy is 67. Early retirement may be possible from 62. Deferring can raise your pension up to age 71.
Can I claim a Italy pension if I live abroad?
Yes. A pension you've earned in Italy stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through Italy's pension authority.
Do totalization agreements affect my Italy pension?
Italy has bilateral social-security (totalization) agreements. These can let you combine the years you worked in Italy with years in partner countries to meet a minimum qualifying period, so short stints aren't wasted. Which partners and rules apply depends on your own work history.
How is the pension system structured in Italy?
NDC (Notional Defined Contribution) PAYG + transitional mixed DB/NDC + voluntary supplementary (DC) Pillar 1: INPS mandatory public pension (NDC/mixed DB-NDC, PAYG); Pillar 2: Fondi Pensione Negoziali/Chiusi (occupational DC, voluntary); Pillar 3: Fondi Aperti + PIP (individual/open DC, voluntary) It includes 10 schemes in our directory.