Pension Increase: Has Everything Been Brought Forward to December?

As happened last year, it is possible that the government will decide to bring forward the date of adjusting pensions for inflation, thus avoiding waiting until the beginning of 2025. This measure, which was discussed in the specialized press and was expected by sources close to the executive branch, seems to be a desire to repeat what was already established in the previous budget law. Therefore, the increase in pensions is already in December.

In fact, in 2023, Legislative Decree No. 145 was issued, allowing pensioners to receive the adjustment as early as December, effectively anticipating the increases expected for January.

This time the same strategy could be proposed again with the aim of exploiting the financial resources already available, thanks to the increase in tax revenues recorded during the year.

The decision could bring economic relief to pensioners, who in December and around Christmas can count on a higher bonus, combining an early increase with their 13th month salary.

Pension increase in December: who will benefit?

If the measure is confirmed, the increase in pensions will come a month earlier than usual, which sees pensioners receive adjustments starting in January. The revaluation of pensions, which reflects the increase in the cost of living, will continue to follow the rules introduced by the latest budget law. This means that pensioners with lower allowances, up to four times the INPS minimum, will benefit from a more consistent revaluation than those receiving higher amounts.

In fact, checks exceeding €2,271.76 will receive a relatively smaller increase, based on income groups in decreasing proportions. This method ensures that pensioners with more modest benefits will receive a larger increase, thus protecting the most vulnerable segments of the population in a period of increasing cuts.

Impact on retirees receiving minimum benefits

Among the groups that will benefit most from the revaluation are pensioners with low allowances.

For them, an increase of 120% of the current value is expected, in line with what we have already seen in the past year.

In fact, this increase seems to have been confirmed for 2025 as Prime Minister Giorgia Meloni has announced her intention to keep this measure alive in the future. The good news is to continue supporting low-income pensioners, who are among those most affected by the rising cost of living.

Economic context: increasing tax revenues

A decisive factor in the decision to bring forward the pension increase to December is the positive performance of government tax revenues. Thanks to better-than-expected tax collections, the government has available resources that can be used as early as 2024 to accelerate the adjustment process. In practice, the aim is to repeat the strategy already adopted last year, making the most of existing economic resources and reducing waiting times for pensioners.

Thus, this favorable context can give government The margin needed to approve the decree that would bring forward the payment date of the increases, allowing pensioners to receive the additional amounts already before Christmas. This is certainly positive news for those who rely more on these adjustments to maintain their purchasing power.

Pension Increase: Differences Between Different Pension Bands

The pension increase (revaluation) does not affect all pensioners in the same way. The lower checks, as mentioned earlier, will receive the most significant increase, and in some cases a higher win rate, as in the case of the minimum checks. Instead, pensioners with higher benefits will have to accept a more contained revaluation, divided into tranches that gradually decrease as the amount increases.

This political option aims to achieve a balance between the needs of social justice and the need to contain the costs borne by the state.

In a period of economic uncertainty, pension revaluation is seen as an essential measure to support the purchasing power of the most vulnerable sectors of the population.

Impact of 2025 Budget Law on Pension Increase

Looking ahead, the 2025 Budget Law is likely to maintain similar criteria for pension revaluation, although the rates of increase and implementation methods may be subject to changes. In fact, the government will have to take into account economic fluctuations and inflation expectations to decide what the next pension measures will be.

Despite the uncertainty, the will to continue supporting low-income pensioners seems clear. Prime Minister Meloni’s announcements on the super-revaluation of the minimum allowance to 120% are a concrete example of this. However, it will be necessary to carefully monitor the performance of the economy to understand whether this measure can also be applied in the coming years or whether corrective measures will be necessary.

In summary

• The payment date of the pension balance may be brought forward to December, as happened last year.
• The revaluation will follow current rules, with greater benefits for lower pensioners.
• Pensions above €2,271.76 will receive a decreasing percentage increase depending on the income bracket.
• Retirees with minimum allowances will receive a 120% revaluation, confirmed for 2025.
• The government will use the increased financial resources to make advance payments.
• The 2025 budget law should maintain similar standards for pension revaluation.