In summary, as of January 1st, new transformation coefficients for the contributory amount that a worker has accumulated over the years have taken effect. This means that a worker who retires at 67 in 2025 will have their contributory amount multiplied by 5.608%, compared to the 5.723% multiplier that was valid until December 31st of the previous year. According to calculations by the Cgil, a worker earning around 30,000 euros gross at the end of their career and retiring in 2025 will receive a pension worth 2% less than a colleague who retired with the same contributory amount in 2024. This translates to a loss of over 25 euros per month, totaling over 326 euros annually, and over 5,000 euros throughout the expected duration of the pension.
Enzo Cigna, the head of pension policy at Cgil, explains that these transformation coefficients are reviewed every two years to account for changes in life expectancy. Higher life expectancy means pensions will be paid out over a longer period, leading to lower coefficients. Following a temporary increase in the 2023-2024 biennium due to a decrease in life expectancy caused by the effects of Covid, the new coefficients are now decreasing to align with historical trends. This revision affects all workers who will be retiring from 2025 onwards and risks further impoverishing those, particularly young individuals, who have their full contributory position after 1995.
The Cgil has long been denouncing the inequity of a pension system that, in the event of increased life expectancy, extends the retirement age and lowers transformation coefficients. The impact is even more significant for those who retire after the age of 67, as they may not have reached the necessary 20 years of contributions. For example, someone retiring at 70 with the same contributory amount in 2024 would receive a pension of nearly 1,397 euros per month, while someone retiring in 2025 would receive 1,367 euros per month, a difference of 30 euros per month, resulting in an annual loss of 389 euros over 13 monthly payments.
In addition to the changes in transformation coefficients, January also brings mini increases linked to inflation. The first pension payment of the year accounts for these adjustments, with pensions being adjusted based on 0.8% of the increase in prices calculated by Istat. This means that pensions up to four times the minimum amount will see an increase linked to 100% of the price increase, pensions between four and five times the minimum will see an increase of 90% of 0.8% (0.75%), and pensions above five times the minimum will see an increase of 75% of the price increase (0.6%). These adjustments aim to ensure that pensioners receive increases in line with inflation rates.
