A small nest egg that grows with the children, is fed by family members and the State, and is ready to support studies, training or the first professional initiatives after reaching the age of 18. This is the idea that animates the new “Welfare Fund for young people”, amidst twin political proposals aimed at reinvigorating debate over additional pension. INPS will be the manager of the instrument, which could start operating on January 1, and which in the intention of its supporters aims to spread the culture of retirement savings from birth.
Two proposals in Parliament
This initiative was realized through an amendment to the Budget Law carried out by the Italian Brothers, accompanied by a proposal for action. Two different paths, but the same challenge: guiding newborns towards a future as pension savers and enabling the new generation to approach adulthood with a cinitial capital.
Voluntary membership
In the Fratelli d’Italia model, membership is voluntary. Parents, grandparents or relatives up to the third degree will be able to open the position in the first three months of the child’s life, with initial payment 100 euros. INPS will add 50 euros per year, like a contemporary version of the traditional postal book.
How and when the capital can be used
The capital can be redeemed upon reaching adulthood, to cover university fees, training courses, or – for those who want professional autonomy – to start a business. That operating rules This will be determined by the decision of the Ministry of Manpower, in accordance with the Economy and the opinions of INPS and Covip. The estimated expenditure is around 18 million euros per year. Senator Marco Lombardo’s proposal (Action) is different. Here too, registration is voluntary, but public intervention is greater: 300 euros for the first year and 200 euros for the next four years, with a stable family contribution of 100 euros. In this case, the financial commitment for the State will increase to 500 million in the first year and 250 million when it is fully operational.
A challenge for providing additional pension funds
The news now reached Chambers.
In Italy there are around 10 million people registered in supplementary pension funds. The ambitious political goal is to double that number within seven years, also reversing the demographic trend of a system that currently has an average age of over 47.
