Previdenza

Previdenza refers to the system of social protection that provides income replacement and protection against life events such as retirement, disability, illness, and unemployment. In Italy, previdenza encompasses public, contributory arrangements as well as private schemes that serve as a framework for social security. It is a core element of the welfare state and is distinct from means-tested assistance (assistenza).

Public previdenza is centered on the pension system, primarily financed through contributions and administered by INPS (Istituto Nazionale della Previdenza Sociale). It operates on a pay-as-you-go basis and delivers benefits such as pensione di vecchiaia (old-age pension), pensione di reversibilità (survivor’s pension), and pensione di invalidità (disability pension). Additional cash benefits and family allowances may also be part of the program.

Previdenza complementare refers to second-pillar arrangements, including occupational and private pension funds. These private schemes—fondi pensione aperti (open funds) and fondi pensione chiusi (closed funds)—are designed to supplement public benefits. Plans may also include Piani Individuali Pensionistici (PIP) and offer tax incentives to encourage private saving for retirement.

Regulation and reform of previdenza are overseen by national law and agencies, with ongoing debates about sustainability in light of demographic changes, labor market dynamics, and fiscal pressures. The system aims to balance adequate retirement income with long-term financial stability, while reducing poverty among the elderly and maintaining coverage for disabled and unemployed workers.