For years we have been told that retirement would be the well-deserved reward for a lifetime of work: a time of peace, with fewer responsibilities and more time to devote to family, travel, and passions.
In the collective imagination, retirement has always been seen as a certain and predictable milestone: the moment when the sacrifices made throughout one’s career finally take concrete shape, providing security and financial stability.
However, the reality is very different.
Pension forecasts show that the pension benefit will be significantly lower than the last salary received — in many cases with a reduction of 40–50%.
Too many Italians realize this scenario only when they are close to retirement, when the margins for action are already much more limited.
And for those who do not prepare in time, the risk is having to give up a substantial part of their standard of living during retirement.
A pension system that cannot bear the weight of the future
The Italian pension system is based on the pay-as-you-go principle: contributions from active workers finance the pensions of those already retired.
For decades, this model has provided stability and security, giving workers the certainty of being able to rely on a predictable post-retirement income.
Today, however, the demographic, economic, and social context is making this balance increasingly difficult to sustain.
Three dynamics, in particular, are putting the entire system under pressure:
1. Aging population
Life expectancy continues to rise: more and more people live many years after retirement, which means pensions must be paid over much longer periods than in the past. This leads to a structural increase in costs for the state and growing difficulty in ensuring adequate benefits in the long term.
2. Reduction in active contributors
Birth rates in Italy are steadily declining, with a new historic low recorded every year.
In 2025, the number of newborns could fall below 350,000: a figure that anticipates a gradual reduction in the working population and, consequently, the contributions needed to fund future pensions.
The result? A growing gap between income and expenditure, with significant repercussions for the sustainability of pensions in the coming decades.
3. Fragmented careers and non-standard contracts
More and more workers have fixed-term contracts, part-time jobs, or discontinuous career paths. This means that contributions are paid irregularly and are often insufficient, resulting in lower pension benefits, even for those who have worked a lifetime.
Supplementary pensions: protecting your future beyond the public pension
More and more workers risk reaching retirement with an income insufficient to maintain their standard of living.
The good news is that there are concrete solutions to prevent this scenario through targeted retirement planning: supplementary pensions are now an essential tool to protect your financial security and face the future with peace of mind.
Among the various solutions available, the pension fund remains the main and most strategic option: a flexible and accessible tool that allows you to gradually build a more secure and peaceful future.
But what exactly is a pension fund?
A pension fund is a supplementary retirement plan designed to accumulate capital to be used at the time of retirement.
We can imagine it as a “container” in which to make regular or occasional contributions during your working years. These resources are invested in diversified financial instruments with the goal of growing the capital over time.
The real strength of a pension fund is compound growth: interest accrues not only on the contributions made but also on the interest already accumulated, generating a progressive increase in capital.
Let’s imagine an example: by contributing €100 per month to a pension fund with an average annual return of 4%, after 30 years the accumulated capital can exceed €70,000, compared to total contributions of €36,000.
Moreover, these returns are subject to significantly lower taxation compared to other financial instruments.
In other words, even small contributions, made consistently, can over time become an important supplement to the public pension. That’s why starting as early as possible is crucial: the longer the time horizon, the more exponential the growth, thanks to compound interest.
A pension fund, if chosen and managed correctly, can become a tangible support to ensure peace of mind and protect your financial future.
However, identifying the right fund and managing it strategically requires specific expertise and constant monitoring: this is why the support of an experienced financial advisor truly makes a difference.
At Team Paperetti, we have extensive and solid experience in retirement planning. Every day, we support our clients in identifying the most effective strategies to supplement the public pension and build real, lasting financial security for the future.
Don’t wait until it’s too late!
Together we can assess your retirement situation and identify a personalized strategy, tailor-made for you!