The Italian pension system is based on two main pillars: compulsory pension provision, managed by public institutions such as INPS (National Institute of Social Security), and complementary, or supplementary, pension provision, on a voluntary basis. The latter was created to respond to now well-established dynamics: the increase in average life expectancy, discontinuous work careers, and the decrease in public pensions make it increasingly necessary to add to the compulsory treatment a form of supplementary saving, in order to ensure an adequate standard of living even after retirement.
Pension fund: how it really works
Supplementary pension provision is implemented through pension funds, instruments that allow capital to be accumulated over time through periodic payments. Employees, self-employed workers, freelancers, and even young people who wish to start building their future security can join. Membership can take place individually or through the employer.
When can one access the supplementary pension?
The accumulated capital becomes available upon reaching the pension requirements, but it is possible to access partial advances for serious medical expenses, the purchase or renovation of a first home, or other documented needs. Furthermore, in case of serious economic difficulties or interruption of working activity, it is possible to request redemption, according to the limits established by law.
Why starting young is advantageous
Starting to build your supplementary pension from a young age allows more capital to be accumulated over time, even with small contributions. Continuity and a long time horizon are the two factors that most influence the growth of the fund. But it is not only a matter of numbers: making conscious decisions about your economic future requires financial education, planning ability, and a mindset oriented toward responsibility.
Familiarity with these concepts can begin at home, where example and dialogue on economic topics stimulate in youngsters greater autonomy and evaluation skills. Educating children in financial skills from an early age, in fact, means laying the foundations to form balanced adults capable of making conscious choices.
Understanding how supplementary pension schemes work is a fundamental step for those who intend to plan their future and reach it with an economic availability adequate to their expectations. Supplementary pension schemes should not be considered only when approaching retirement; on the contrary, it would be advisable to think about them in advance in order to reach retirement age with greater peace of mind.
On the blog of the Museum of Saving you can find many other insights on saving, planning, and financial sustainability. Discover them to train your skills and make increasingly informed choices. You can find all the content on the website www.museodelrisparmio.it.
July 30, 2025