INPS contributions and retirement age
#1
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INPS contributions and retirement age
Just had a big shock as I had previously thought that the Italian retirement age was 67 when in fact it is past 71 (71 years and 8 months in my case) for all free lance professionals who have not paid more than a total of approximately €166,000 of INPS contributions.
This means that the obligatory 26% deductions from your earnings every year do not provide a pension until you are 71.
This is a big disadvantage to be taken into account for expats coming and working here for part of their lives as they unlikely to reach the required level of contributions whereas someone working here all their lives can retire at 67.
Incidentally the pension is roughly 5-6% of your contributions per year so someone who has paid €150,000 will receive about €800 per month from age 71-72. To receive any pension at all you must have paid INPS contributions for 5 years.
The above calculations are approximate as they depend on the exact month of retirement etc,
This means that the obligatory 26% deductions from your earnings every year do not provide a pension until you are 71.
This is a big disadvantage to be taken into account for expats coming and working here for part of their lives as they unlikely to reach the required level of contributions whereas someone working here all their lives can retire at 67.
Incidentally the pension is roughly 5-6% of your contributions per year so someone who has paid €150,000 will receive about €800 per month from age 71-72. To receive any pension at all you must have paid INPS contributions for 5 years.
The above calculations are approximate as they depend on the exact month of retirement etc,
Last edited by nicktonight; Jan 20th 2020 at 10:37 am.
#2
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Re: INPS contributions and retirement age
If I also had UK contributions I would claim my pension at whatever age they say is the lowest regardless of how long you have paid as I'm sure the UK conts will still be combined even after Brexit. Italy used to have one of the earliest retirement ages going....
#3
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Re: INPS contributions and retirement age
Thanks for the feedback but according to INPS and my Patronato although you can combine the number of years of UK contributions with the number of years of Italian contributions to obtain the minimum of 20 years of contributions required to have a right to a pension in Italy, you cannot add the actual amount of UK contributions to the INPS contributions to obtain the threshold amount (€166,000 approx) to obtain the Italian part of the pension before the age of 71 and several months. Hope that this is clear! This may apply only to the "Gestione separata" for freelance workers.
#4
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Re: INPS contributions and retirement age
Just hope the UK pension remains fully payable there!
#5
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Re: INPS contributions and retirement age
I have a French Pension for the years I worked in France which is fully payable from age 66 with no strings attached about minimum contributions. Coming to work in Italy in middle age would have been an absolute financial disaster for me if I had sold a house and purchased one here in Sicily - luckily something held me back. My post above is simply to illustrate the hidden pitfalls of being a working expat in Italy and help people make the right calculations - who knows perhaps things will change for the better now
Last edited by nicktonight; Jan 20th 2020 at 4:38 pm.
#6
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Re: INPS contributions and retirement age
Its a minefield - and seems to all depend who's at the desk you day you go to INPS. I have been told there is no set age for lavoratori autonomi - you need 38 years of contributions to qualify. As UK contributions being added to Italian ones, apparently this may not be possible after Brexit (all depends on Boris). This ma be true or not - but there doesnt seem to be anything actually written down! BAsic state pension is about 600 a month I think, so is it worth paying 166 000 euros for another 200 a month?
Last edited by modicasa; Jan 21st 2020 at 5:49 am.
#7
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Re: INPS contributions and retirement age
Its a minefield - and seems to all depend who's at the desk you day you go to INPS. I have been told there is no set age for lavoratori autonomi - you need 38 years of contributions to qualify. As UK contributions being added to Italian ones, apparently this may not be possible after Brexit (all depends on Boris). This ma be true or not - but there doesnt seem to be anything actually written down! BAsic state pension is about 600 a month I think, so is it worth paying 166 000 euros for another 200 a month?
This is the last year of 'quota 100' so if you meet the requirements it's worth considering as next year, unless you are 67, 38yrs will not be enough.
Last edited by 37100; Jan 21st 2020 at 9:58 am.
#8
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Re: INPS contributions and retirement age
Thanks Concierge. I must admit I put my headin the sand a couple of years ago. Ive still 10 -14 years to go before I may or may not get anything - so it hardly seems worth getting worked up about. its more likely that Ill get a handful of small change a week when I get to retirement age
#9
Re: INPS contributions and retirement age
I need to find a Sugar Daddy because I don't think I'll be getting any kind of pension anywhere.
They should teach earnings, taxes and pension plans at school instead of ******* graphs and obtuse bloody angles.
They should teach earnings, taxes and pension plans at school instead of ******* graphs and obtuse bloody angles.
#10
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Re: INPS contributions and retirement age
I am new to this forum and started a related thread. I am interested to know more about the above as I paid 10 years of INPS between 1994 and 2004. Will the INPS contributions I paid count towards any deficit in the full UK pension? Or does this only apply to those resident in Italy?
#11
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Re: INPS contributions and retirement age
As I understand it, no. You will get a miserable amount from Italy and less miserable amount from the the UK. They will remain distinct and separate. Happy to be proved wrong!
#12
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Re: INPS contributions and retirement age
Thanks for the feedback but according to INPS and my Patronato although you can combine the number of years of UK contributions with the number of years of Italian contributions to obtain the minimum of 20 years of contributions required to have a right to a pension in Italy, you cannot add the actual amount of UK contributions to the INPS contributions to obtain the threshold amount (€166,000 approx) to obtain the Italian part of the pension before the age of 71 and several months. Hope that this is clear! This may apply only to the "Gestione separata" for freelance workers.
NB I should have looked a little closer at my own link, it actually describes how it is supposed to work, probably better than I can these days...
Last edited by Geordieborn; Aug 12th 2020 at 10:40 am. Reason: Missed link
#13
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Re: INPS contributions and retirement age
Another recent good post by Hadenoughpizza today had this Gov.UK link , which I think is good news for those UK people living and working in Italy prior to exit. Scroll down to "Pensions"....
#14
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Re: INPS contributions and retirement age
Thanks for that link Geordieborn-lots of useful info.
Travelling now with our Motorhome in Abruzzo trying to find that house before the end of the year. Constantly reminded of what a beautiful country this is!
Travelling now with our Motorhome in Abruzzo trying to find that house before the end of the year. Constantly reminded of what a beautiful country this is!
#15
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Re: INPS contributions and retirement age
If you like the vino, look out San Lorenzo in Castilenti, wonderful wine... and great place!