Author Topic: Point system for pension  (Read 610 times)

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Point system for pension
« on: June 12, 2018, 05:10:25 AM »
Italy's new government set a point system for pension eligibility.
The retirement age and years of contribution when added up must equal to 100. What do you think of this point system?  http://www.bbc.co.uk/news/world-europe-44168602

Penn42

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Re: Point system for pension
« Reply #1 on: June 12, 2018, 08:00:59 AM »
My union pension works like that, but the number is 80.  I'd like to know what factors/threshholds constitute a credit under that new Italian system.  I skimmed the article and it doesn't look like it goes into the details.
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Jaguar Paw

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Re: Point system for pension
« Reply #2 on: June 12, 2018, 08:57:29 PM »
My pension also has this but it is the rule of 70. I started at 22 so at 46, with 24 years of work, I'll be able to retire with pension. 2.25% each year fist 20 years, plus 2% for each year after that. 25 years gets 55%. I like point systems, especially when they are way less than 100 like Italy!

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Re: Point system for pension
« Reply #3 on: June 12, 2018, 11:58:32 PM »
Yeah, i feel that the point system intuitively feels fair. With the italian system, if you contribute for only one year in your life, you can access the pension at 99. Someone who started work right out of school at say 16 can get a pension after 42 years of work at 58. The work to pension ratio is at almost 1.2 to 1 given a life expectancy of 90. There is no intergenerational issue.

Bateaux

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Re: Point system for pension
« Reply #4 on: June 13, 2018, 12:34:28 AM »
The company I work for had the 80 point system years ago.  They ended it in 2012 because they would go bankrupt if it continued.   For me it was 52 years old and 28 years working.  That's gone.  Now it's minimum 55 years old for the cash balance plan currently in place. they are moving towards 62 years old. 
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PhilB

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Re: Point system for pension
« Reply #5 on: June 13, 2018, 02:49:35 AM »
It sounds nice, but it's seriously unaffordable.  It will presumably translate into an average pension age of about 60 - compared to the current figure of around 66.  That costs a fortune, not only in paying the pensions themselves, but in reduced tax revenues from all those people retiring earlier.  I'd hate to be holding Italian government bonds...