Light allowances for those retiring in 2025. This is the effect of the new ones. Coefficients of conversion Taken on January 1, it will reduce the old-age pension by 2% for the year just beginning. CGIL does the calculations, duplicating the 2024 match amount with the same contribution amount. According to union estimates, those retiring from work at age 67 with a pension of 1,250 euros would receive 25 euros less, for a total loss of 326 euros per year.
Revision of coefficient of variation
The coefficients of variation come. A review is conducted every two years. by the Ministry of Economy, as established by the Danish reforms of 1995, based on factors related to life expectancy.
After the increase recorded in the biennium 2023-2024, the coefficients of change for the calculation of the old-age pension have returned, due to the decrease in the probability of survival due to the CoVID-19 pandemic. 5,608%, pulses 5,723% of last year.
As Enzo Cigna, CGIL Social Security Policy Manager, explained, “The higher the life expectancy, the The longer the repayment period. pension and consequently the lower the coefficient”.
2025 Old Age Pension Estimates
Cigl’s estimates consider the case of a person who retires from work at the age of 67, with a salary of 30 thousand euros and an amount of contributions accumulated over the years of 283,971.65 euros.
According to the Union’s calculations, these pensioners receive an annual allowance of 16,251.70 euros, which is roughly 1,250 euros per month, based on the coefficient for the last two years (5.723%). 15.925,13 eurosAbout 1,225 euros per month. A reduction that would result in a total reduction of more than 5 thousand euros on the full amount of the expected pension.
Despite a 0.8% increase in pensions in January due to revaluation, the reduction in social security treatment will affect all age groups, but will be more significant for those who will retire in old age. Over 67 yearsBecause for example he has not reached the required contribution for 20 years.
Taking into account the same amount for those who leave work in 2024 and receive an allowance of 1,397 euros, those who retire at the age of 70 will receive an amount of 1,367 euros starting in 2025, 30 euros per month and 13 per month. On payments, they will get. 389 euros less.
To whom do the new conversion factors apply?
Effective January 1, 2025, the new transformation coefficients will apply to the contributory portion of Pension E. They will be interested:
- Subjects to which the contribution method of accounting is fully applicable, therefore, commencing from December 31, 1995;
- Articles that activate the option of accounting through the contribution system.
- Subjects that fall under the mixed accounting method;
- “Pro-rata” contributors, i.e. those who have at least 18 years of contribution as of December 31, 1995, for the portion of seniority accrued after December 31, 2011.
