Pension alarm, young people at risk of going there at age 74: study

Pension alarm, young people at risk of going there at age 74: study

National Youth Council launched Pension Alarm. “The growing precarity and job loss associated with low wages and lack of social guarantees, particularly affects young people and women, making it more difficult for them to enter the labor market, have contractual stability and more.” pay scale, This was stated yesterday at the presentation of the research “Contributory status and pension future of young people” conducted by the National Youth Council together with the President of EU.RES, CNG. Maria Cristina Pisaniwho “expressed the need for a more in-depth debate on social security issues that also takes into account the needs of younger generations”.

Pension alarm, shall we go there at 74?

“All of these have important implications pension status The future of young people”, Pisani underlined. “Demographic issues and changes to the ‘net contribution’ system have further de-risked the economy sustainability of our pension system. This trend forces citizens to work longer hours to receive less generous pensions than in previous generations.

according to the analysis of ureus, “The combination of job loss and low wages for workers under 35 will lead to retirement from work simply because of old age, with pension amounts close to social allowances,” says the president of the National Youth Council. A situation that would be socially destabilizing”.

These original estimate On the value of pensions expected in the coming decades for workers under age 35: If the moratorium lasts until 2057, thus setting retirement at approximately age 74 (73.6), the amount of the pension would be per month 1,577 gross euros (1,099 net of Irpf), a value equivalent to 3.1 times the amount of the social allowance.

I study

for workers in VAT number (still remaining until 2057 and withdrawing at age 73.6) The amount of the pension allowance would be 1,650 euros gross (1,128 net of IRPEF) per month, a value that is equivalent to 3.3 times the amount of the social allowance.

“A guess – he says alessandro fortunaCouncilor to the Presidency with responsibility for employment and social security policies – which highlights the serious distortion of the pension system as currently defined, which not only reflects income inequalities over time, omitting any redistributive dimension, It is also punitive towards low-income workers. income, forced to stay in the labor market (beyond contribution seniority) three or six years longer than their peers with higher earnings and greater job stability.

Pension and GDP

According to the latest report eurostat, Pension spending in Italy is 17.6% of GDP in 2020, the second highest in the EU27 after Greece, and much higher than the EU27 average of 13.6%. “Even the OECD estimates They confirm the trend of an increase in the retirement age that will make young people’s working lives increasingly longer”, Pisani said. “For young people entering the world of work at the age of 22 in 2020 in Italy, it is expected that they will only reach the retirement age of 71, the highest figure among the main European countries. “

Pisani also pointed out pay gap Between young workers and the general working population: “In 2021, workers under the age of 25 received an average of €8,824, which is 40% of the total average salary, while workers between 25 and 34 received an average of €17,076, which 78% of the average salary. In addition, there is a large wage gap between working women and young men, which widens over time.

What to do?

performance, in short, how purely contributory model It is sustainable only if it is channeled into the job market on the basis of stability and wage growth. On the other hand, a variable that has been negated by data according to which, in 2021, more than one in four workers under the age of 35 received an annual salary of less than €5,000 and between 2011 and 2021, There is a shortage. The share of youth with permanent contracts increased from 70.3% to 60.1%. Also, again over the span of ten years, the incidence of fixed-term contracts increased and the number of abnormal contracts increased from 29.6% to 39.8%. A reality that is incompatible with a system that requires full-contributing careers, with pay increases, to allow for decent treatment. “In light of these figures, as a National Youth Council – continues Fortuna – we continue to call for the introduction of aguaranteed pension For young people which provides tools to support and cover contributions for young people’s training, gap and pay gap periods.

interference that must accompany, If we are not to ignore the risk of poverty affecting entire generations, structural changes that allow stable and quality access to the labor market, as well as restore the sustainability of a generational exchange pension model, are needed.

“This trend is also worrying for society as a whole, threatening our competitiveness and future well-being country in the coming years”, concluded Maria Cristina Pisani. “We need a more open and inclusive national debate on pensions. it’s a matter of intergenerational justice and the stability of our social order”.





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