Italy’s retirement age is expected to move towards 70 in the coming decades as the country adapts to fast-ageing demographics, according to the OECD’s Pensions at a Glance 2025 report released on Thursday.
Italy’s current retirement age is 67. A mechanism already links future increases to life expectancy. The OECD says Italy will join Denmark, Estonia, the Netherlands and Sweden in lifting its normal retirement age to 70 or more.
The report highlights a steep demographic shift. Italy is among the countries where the working-age population, defined as people aged 20-64, is set to fall by over 30% in the next 40 years. Estonia, Greece, Japan, Korea, Latvia, Lithuania, Poland, the Slovak Republic and Spain face similar trends.
Across the OECD, the population will age rapidly. By 2050, there will be 52 people aged 65 and over for every 100 people aged 20-64. The ratio was 33 in 2025 and only 22 in 2000. Italy, Greece, Poland, the Slovak Republic and Spain are expected to see increases of more than 25 points.
Longer, healthier lives equate to longer working lives
OECD Secretary-General Mathias Cormann said longer, healthier lives make longer working lives essential. He warned that a shrinking workforce could cut GDP per capita by 14% by 2060. Rising public debt and higher spending needs will add pressure on pension systems.
The report notes that the average OECD retirement age for new workers will rise to 66.4 for men and 65.9 for women. Current levels are 64.7 and 63.9. Future retirement ages range from 62 in Colombia, Luxembourg and Slovenia to more than 70 in several northern European countries and Italy.
Average-wage workers entering the labour market today can expect a net pension equal to 63% of net wages. Replacement rates fall below 40% in Estonia, Ireland, Korea and Lithuania.
The OECD also highlights the gender pension gap. Women receive pensions that are 23% lower than men’s across the OECD. The gap has narrowed since 2007 but remains driven by lower lifetime earnings, shorter careers and unequal unpaid work. Survivor pensions reduce the gap by about one-third, as women account for most beneficiaries.
The report calls for coordinated labour, family and pension policies. It recommends more affordable childcare, fewer tax and benefit disincentives, and better access to leadership roles. It also says countries should phase out early pension access for women, where it still exists, to reduce long-term inequalities.
Also read: Italy’s demographic alarms bells are ringing
