Fourth Report on the Italian Pension System – Pension and Welfare Financial and Population Trends in 2015

The Report on the “Italian Pension System”, now in its fourth edition, is the ideal follow up of the publications created by the Pension Expenditure Evaluation Unit (NUSVAP), which was set up under Act n. 335/95 and then wound up in June 2012. The aim of this Paper is to provide an overview of the complex pension system in Italy and a reclassification of pension and welfare expenditure within the framework of the State budget as a whole.

This edition breaks down contribution revenues and pension and welfare expenditure by region and different types of pension and welfare benefits by geographical distribution.

On the basis of the accounts provided by Social Security organizations, this fourth Report illustrates the trends of pension expenditure, contribution revenues and balances for different public and private compulsory pension schemes in Italy (including the Welfare Benefit Scheme (GIAS) and the Temporary Benefit Schemes (GPT) for income-support measures; moreover, it reviews the main variables: number of active members, number of pensioners, average contribution, average pension, that concur to determining the balance in the current, medium and long-term accounts.

On the basis of the results of the projections of the compulsory pension system, the Report illustrates the trends and the performance of the total expenditure/GDP ratio after 2015 and in the short, medium and long term, also in terms of financial sustainability and pension adequacy.

Moreover, the Report analyses the INAIL budget, public and private health expenditure, “substitution rates” of the pension system with projections for different careers and economic scenarios as well as complementary and supplementary welfare benefits. This information makes it possible to obtain a comprehensive overview of the Italian welfare system.