Withdraw from the job market with 35 years of contributions it may not be enough to secure one pension fromamount adequate to support the family budget.
The “new” rules used for the calculation of the pension, governed by the Dini law with the Fornero reform which subsequently extended its application starting from 1 January 2012, they tell us that to ensure a satisfactory amount one must have received a more or less high salary for most of his career. And the date on which he retires also has an impact. With the so-called contributory methodin fact, a is used transformation coefficient to calculate how salaries and years of work translate into a pension, which is higher the longer the access to the pension is delayed.
It is therefore not certain that a long career alone guarantees a high pension amount, although it obviously represents an important factor: in fact, the more years worked, the longer those contributions have been paid which will subsequently be transformed into a pension. However, a lot depends on what the earnings were, especially in the first years of the career when the salary is usually lower.
Let’s see why by doing a projection on how much is due after 35 years of work based on your paycheck amount and retirement date.
How the pension is calculated with the new rules
Currently pensions, at least for the part after January 1, 1996 (or 1 January 2012 for those who can boast 18 years of contributions as of 31 December 1995), are calculated using the contributory method.
Understanding how it works is very simple: the period worked must be calculated portion of contributions paid to INPS or to the fund to which they belong (in the case of freelancers) taking into account the relevant rate established by the relevant management. For example, in the case of employed workers it is equal to 33% of the gross salary, while for those enrolled in the Separate Management it is usually 35% (but can vary based on various factors).
The contributions paid are periodically revalued based on the cost of living, and in doing so they accumulate in the so-called contributory amountwhich in turn becomes a pension through the application of transformation coefficient.
As anticipated, these are all the more advantageous for those who delay access to their pension. In detail, the rates used for the two-year period 2023-2024 are as follows:
| Age | Coefficient 2023-2024 |
|---|---|
| 57 | 4.270% |
| 58 | 4.378% |
| 59 | 4.493% |
| 60 | 4.615% |
| 61 | 4.744% |
| 62 | 4.882% |
| 63 | 5.028% |
| 64 | 5.184% |
| 65 | 5.352% |
| 66 | 5.531% |
| 67 | 5.723% |
| 68 | 5.931% |
| 69 | 6.154% |
| 70 | 6.395% |
| 71 | 6.655% |
How much pension is due after 35 years of work
There is therefore no equal amount for everyone after 35 years of work, as there are different factors that have an impact. However, we can do a example to better understand how the new rules work which are applied to a growing number of people over the years.
For example, let’s consider Tizio who for the first 10 years of work had to settle for very low salaries, on average 1,000 euros per month. He therefore paid 4,290 euros in contributions every year, 42,900 euros overall.
After which his career began to give him the first satisfactions, receiving an average salary of 2,000 euros per month over the following 10 years, thus adding 85,800 euros to the contribution amount.
A growing career which for the next 15 years led him to earn a salary of 2,500 euros, with 10,725 euros in contributions per year, 160,875 euros in total.
By adding the various periods, we arrive at a total of 289,575 euros of contributions. Let’s say that with the revaluation we arrive at a contribution amount of 300,000 euros: how much pension is due? To find out you have to take the transformation coefficient foreseen for the retirement age: Tizio goes there at 67 with the old-age pension, with a rate therefore of 5.723%: applied to the contribution amount it returns a pension of 17,169 euros per yearso approx 1,320 euros per month. A notable difference compared to the last salary received, with the pensioner who would therefore be forced to review their expenses or carry out a new job to supplement.
In fact, the last ones were not enough 15 years of work with average salary of 2,500 euros to ensure him a higher pension, with the first years of work being decisive for the final result. This would not have been the case, however, with the “old” rules for calculating the pension: with the remuneration method, in fact, only the last years of workthus ensuring a transformation rate (the difference between the last salary received and the pension) better than that usually foreseen with the contribution calculation (52% in the case described by the example).
