According to a study conducted by the UIL's Social State, Fiscal Policies, and Welfare Services department, workers who choose to retire early at age 64 face a significant reduction in their annual pension income. The analysis indicates that calculating the pension entirely under the contributory system at this age results in a loss of nearly €5,000 per year compared to continuing employment until reaching the standard retirement age of 67 and a half years with a mixed calculation method.
The data shows that an employee with a final gross annual salary of €35,000 who accepts early retirement would lose €4,989 annually. Specifically, the fully contributory pension at age 64 amounts to €25,477 per year, whereas the pension calculated via the mixed system at 67 and a half years reaches €30,466. This discrepancy translates to a monthly gross difference of approximately €384 across 13 payments, representing a reduction of 16.38%.
Santo Biondo, the UIL's general secretary, emphasized that while the ability to choose when to end one's working life addresses a real need, particularly after long careers or in demanding work conditions, this choice must be accompanied by guarantees of an adequate pension treatment. Biondo warned that flexibility tied to a fully contributory recalculation may effectively remain accessible only to those who can afford a lower income than what they would accumulate by continuing to work.
The union leader highlighted that individuals with low wages, discontinuous careers, or heavy family burdens could be forced to continue working even when they have a genuine need to leave the workforce. The study underscores the financial trade-offs involved in early retirement options under current calculation frameworks.
Sources: ANSA Economia.