On July 2010 the Italian parliament passed a law by which it increased public- and private-sector retirement ages. The new measure aims to reduce Italy's public deficit below the European Union's required 3% ceiling, to 2.7% of GDP by the end of 2012, about half of the 5.3% of GDP expected in 2010.
According to the recently passed law, on January 1, 2012, the retirement age for women in the public sector will rise immediately from 61 to 65 years, the current age for men. This measure is expected to reduce pension expenditures by about 1.45 billion euros (US$1.85 billion) through 2019.
As regards private-sector workers, the current retirement age (65 for men and 60 for women) will be adjusted according to life expectancy projections as calculated by the Central Institute of Statistics. The first adjustment will take place on January 1, 2015 and will increase the retirement age by a maximum of 3 months. The second adjustment will occur in 2019, and subsequent adjustments will be every 3 years thereafter. According to government projections, by 2050 private-sector workers will retire more than 3 years later than the current retirement ages. This measure would save nearly 87 billion euros (US$111 billion).
Sources: Italy: 2010 Article IV Consultation, International Monetary Fund, May 2010; "Italy Raises Retirement Age," Straits Times, June 10, 2010; "Factbox—What's in Italy's Austerity Package," Reuters, July 15, 2010; "Italian Government Sneaks in Retirement Age Rise," Plansponsor.com, July 30, 2010; "Italy: New Budget Increases Retirement Age," Global News Briefs, September 2010; "Italian Government Launches Financial Intervention Package," eironline, September 3, 2010.