Italy’s Pension Age Freeze Requires €3 Billion Annually to Halt 2027 Increase

To block a scheduled three-month increase in the retirement age set for 2027—a move triggered by rising life expectancy—the Italian government would need to allocate at least €3 billion annually. According to technical experts working on the dossier, halting the automatic adjustment would allow over 500,000 public and private sector workers to retire in that year who would otherwise have to wait an additional three months. Based on 2024 data, the cost of this measure is estimated at approximately €2.7 billion, which includes the pro-rated thirteenth-month salary. The total financial impact rises further when accounting for the release of severance pay (Tfr) funds held by the INPS treasury and the fact that the baby boomer generation will reach the age of 67 in 2027. Initial costs in the first year are projected to be lower.