Italy of gaps: Women receive lower pensions, workers live less than managers

At the end of their working careers, women’s pensions are lower than men’s. And not by a trickle: 36%. This gap has been confirmed by INPS (National Institute of Social Security), which published its annual report today, September 13. The report reveals not only the differences between men and women, but also the difference in life expectancy depending on the role held throughout the career. It is lower for employees than for managers. Master data.

According to data announced by INPS extraordinary commissioner Micaela Gelera, at the end of 2022 there were 16.1 million retirees in Italy, 7.8 million of whom were men and 8.3 million women. The total amount paid was equal to 322 billion euros. “Women have only 44 percent of the total amount, although they represent 52 percent of pensioners. 96 percent of pensioners receive an INPS pension, with an average gross monthly income of 1,687 euros, while men’s is equal to 1,969 euros.”

The report shows that social security treatments, i.e. pension/advance, old-age, disability and survivors’ pensions, cover 92% of expenses, while social assistance treatments, i.e. civil disability benefits, pensions and social benefits, cover the remaining 8%. The item with the greatest impact on expenditure is pensions/advance pensions with 56% of the total, followed by old-age pensions with a share of 18% and survivor’s pension with a share of over 13%. Assistance to disabled civilians represents 6% of the total; Finally, there are disability pensions and social pensions and allowances, which represent 4% and 2% respectively. Compared to average amounts, early/seniority pensions are the highest with an average of 1,915 euros per month, while old-age pensions are 889 euros, disability pensions are 1,018 euros and survivors’ pensions are 747 euros per month. . Social benefits are around 460 Euros per month.

Women who choose early retirement

Female workers who want to stop working can opt for the “Women’s Option”, which allows them to receive a pension with more favorable age requirements than the current age requirements (but there are strict limits, ed).

According to the report, as of January 2023, pensions obtained with the “women’s option” account for approximately 16 percent of all advance pensions for women. Approximately 175,000 people benefited from this, with a check almost 40% lower than the average, not only because of the recalculation of contributions, but also because of the fewer contribution years and the lower incomes of these workers. The average penalty resulting from recalculation of contributions shows a decreasing trend, from 23% in 2013 to 8% in 2022.

Life expectancy of employees is shorter than managers

Not only are there differences between men and women, but there are also huge differences in life expectancy depending on the role a person takes on during their career. That of employees is lower than that of managers.

According to the INPS, life expectancy for retirees in the top income quintile is 67 years old, which is around 2.6 years lower than for retirees in the top income quintile, but this difference grows depending on the sector and sector in which we work. the tasks we have. “These differences in life expectancy based on income contrast with the use of a single conversion coefficient in calculating the pension, which is severely penalizing for less wealthy people whose contribution amount is converted into a lower pension,” the institute said. The pension they would receive, given their actual life expectancy. “Conversely, the richest receive higher pensions than would be obtained from rates that take into account the real average length of their lives.”
“We read that the differences between the first and last quintiles are significant and greater in men than in women.”

Even at the regional level, differences in life expectancy are significant. Life expectancy for men is maximum in Marche and Umbria (18.3 years), and for women in Trentino-Alto Adige (21.6 years). For both, it is minimum in Campania (17 in men, 19.6 in women) and Sicily (17.1 and 19.7 respectively).

61% occupancy

According to INPS data, the employment rate in Italy is currently at 61%. This represents a historical level that was not reached even before the great international financial crisis of 2008.
According to the Institute, women’s contribution to the post-pandemic recovery is significant: the activity rate of 57.4% in April 2023 exceeds that before the pandemic, and the same goes for the employment rate, which is now equal to 52.3%. In April 2023, the unemployment rate in Italy was 7.8%. “We read that these significantly positive trends are certainly not sufficient to take into account the well-known structural problems that have been overcome. Compared to Europe, for example, the employment rate in Italy is still significantly lower than the EU average (equal to 69%) in the third quarter of 2022 5) and France (68%), Germany (77%) and also Spain (64%)”.

Who gets the single allowance and how much does it cost?

Expenditure for the first twelve months of the single benefit for children equals approximately €16 billion, paid out monthly to an average of 5.7 million families, most of whom do not receive citizenship income. In December 2022, the average amount was 233 euros, while the average aid for RDC recipients amounted to 169 euros.

Cutting the wedge, higher wages

From July 2023, the contribution deduction provides a 7% exemption for workers with a taxable monthly pension up to 1,923 euros per month (€25,000 on an annual basis) and 6% for workers with a monthly pension between 1,923 euros and 2,692 euros (€35,000 on an annual basis). The taxable amount between will provide an average salary advantage of approximately 98 euros.

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Source: Today IT