Italy’s retirement income system comprises a notional defined contribution scheme for workers and a minimum means-tested social assistance benefit. Voluntary supplementary occupational schemes also exist but coverage is low but gradually increasing.
The overall index value for the Italian system could be increased by:
- increasing coverage of employees in occupational pension schemes thereby increasing the level of contributions and assets
- increasing the labour force participation rate at older ages
- restricting the availability of benefits before retirement
- reducing government debt as a percentage of GDP
The Italian index value increased from 49.6 in 2014 to 50.9 in 2015 primarily caused by an improvement in the integrity sub-index due to the availability of additional information.