The editorial staff of ProiezionidiBorsa wants to continue to inform readers about the various options useful for requesting pension treatment INPS. Today we want to understand how much a worker must give up when he retires. Indeed, the contributory pension calculation system is progressively changing the ratio between the last salary and the amount of the pension. Obviously, the amounts can vary significantly from case to case.
However, we can say that the transition from salary to pension involves an increasingly marked decrease in one’s income. In this article we will calculate how much retirement will be taken by those who earn 1,200 euros per month and therefore by how much their income will fall. Our goal is to determine the future purchasing power and understand if this will be sustainable over time. In fact, the transition from the remuneration system to the contributory system risks significantly reducing the monthly availability of pensioners. Thus increasing the number of people who do not make it to the end of the month.
The methods of calculation
The current rules provide for requirements for access to old-age pensions that increase over time. Today, the minimum age for retirement is 67. Stable compared to last year but increased by five months from 2018. To understand how much pension those who earn 1,200 euros a month will take, we have examined a specific case.
A 60-year-old reader with 35 years of contributory seniority who today receives an income from employment of 1,200 euros per month. The taxpayer will therefore have to wait seven years to submit a retirement request to INPS and access the old-age treatment. In 2027, INPS will calculate the reader’s pension according to the mixed criterion since the worker paid contributions before 1996. So let’s see how much pension will be taken by those who earn 1,200 euros per month and what will be the difference with respect to income.
How much pension will those who earn 1,200 euros a month take?
Upon reaching the future retirement age, our reader will have accrued 42 years and 2 months of contributions. The estimated net income for the future retiree is about 12,300 euros which corresponds to about 950 euros per month. These calculations are based on current social security and tax regulations, therefore subject to change over time. Despite the approximation, we have an idea of how much pension people who earn 1,200 euros per month will take.
We also know that the reader will have to budget about 250 euros per month of lower income. A decrease of more than 20% which could significantly affect its future purchasing power. Lower availabilities at a stage of life normally characterized by higher healthcare costs. The ProiezionidiBorsa staff advises its readers to carefully evaluate how much pension they will be entitled to. In this regard, here is a deepening to understand how to remedy contribution gaps and safeguard our incomes in old age.