Average gross pension income in Italy 2012-2022
In 2022, the average annual gross pension in Italy amounted to 20,000 euros. Compared to 2015, the average pension income increased by around 3,700 euros.
An expensive social security system
A social security system is meant to help individuals and families dealing with unexpected accidents and losses, invest in health and education and protect the elderly. The Italian social security system is public and based on compulsory contributions made by taxpayers and managed by the state. Depending on several factors, ranging from the average age of retirement to the generosity of the benefits paid, social security can be very costly for the public administration. In 2022, in Italy there were over 16 million pensioners, defined as individuals who receive at least one type of pension benefit. The public expenditure for pensions reached almost 322 billion euros, which amounted to approximately 16 percent of the country’s GDP.
The increasing popularity of pension funds
Alongside the public social security system, pension funds based on voluntary contributions by private members can provide a safety net for those who want to receive a supplementary benefit. Despite being far from reaching the values registered in other countries such as the United Kingdom, the Netherlands and Germany in terms of assets, the popularity of pension funds is growing in Italy. In fact, the value of voluntary pension funds’ contributions in Italy increased from 6.8 billion euros in 2007 to 11.3 billion euros in 2019.
