In 2024, retirees could get a pleasant financial surprise before the end of the year. The hypothesis of increasing the retirement allowance scheduled for December is currently being evaluated by experts from the Ministry of Economy.
Although there is no final confirmation yet, this plan could be beneficial to both the beneficiaries and the state. The main idea will be to advance the date of pension adjustment, which usually takes place in January. This would allow part of the expenditures to be transferred to the 2024 budget, instead of burdening the 2025 budget.
The year in which the most stringent financial restrictions imposed by the European Union will come into force.
Context of the 2024 pension increase
Pensions are adjusted each year to match inflation, a process known as “automatic revaluation”. This revaluation is calculated on the basis of changes in the cost of living, with the aim of ensuring that the purchasing power of pensioners is not eroded by rising prices. However, the adaptation process is not immediate. In fact, although the National Institute of Retirement begins to recognize the temporary adjustment as early as January each year, the final value of inflation is announced in November, when the exact amount of revaluation is considered.
As is the case every year, INPS will make an adjustment to recover any differences between estimated and real inflation. Typically, this refund occurs in January, resulting in an increase in your monthly check. However, the hypothesis now being examined involves bringing this pension increase forward to December 2024 (as happened last year). In this way, pensioners can benefit from the increase in December 2024, which will help them cover typical expenses for the Christmas holidays.
The reasons behind progress
The idea of bringing the pension increase forward to December 2024 has mainly economic roots.
This advance would allow the state to calculate expenditures in 2024, avoiding having to include them in the 2025 budget, the year in which Italy will be subject to stricter rules by the European Union regarding the control of public accounts. For this reason, advancing the date of increasing pensions may be beneficial to the government, as it allows it to keep the public deficit within expected limits.
From the perspective of pensioners, the advance payment from the balance does not represent a real reward, but rather an advance on amounts already owed. But getting this raise in December, rather than January, would provide a practical advantage for many, especially in a month characterized by higher expenses.
How does pension adjustment work?
The pension revaluation process is based on data provided bystate related to purchasing power. For example, in 2023 the estimated increase was about 5.4%, and this value was used to calculate temporary pension increases. However, the actual value of your purchase may be higher or lower than initially anticipated.
For example, if the National Institute of Statistics decided in November 2024 that actual inflation was 6.4%, there would be a 1% difference for the recovery, which would be applied retrospectively for all months of the year. This difference, which is usually paid in January, could be brought forward to December, with immediate positive effects on pensioners’ income.
Benefits of pension increase in December
For pensioners, who are waiting for confirmations or denials about a possible 2025 pension increase of €200, December 2024 could be particularly beneficial thanks to the combination of the 13th salary and the advance payment for the pension increase. The thirteenth month’s salary, which is itself an additional amount paid at the end of the year, represents an important economic support for families, allowing them to face expenses related to the Christmas holiday more calmly.
If pension increases are added to this, the benefits could be even greater.
This increase, if confirmed, would represent a kind of “Christmas bonus”, which, although not exceptional or additional, could be considered so thanks to the timing in which it would be paid. The additional amount, together with the thirteenth amount, will allow pensioners to have greater economic resources at a time when expenses tend to increase, including gifts, dinners and other holiday-related activities.
In summary
- The possibility of submitting a pension increase until December 2024 to ease the 2025 budget.
- Pensions are reassessed annually based on the purchase process sent by INPS.
- The government is considering moving forward the date for amending pensions from January to December 2024.
- Pensioners can benefit from the increase in December with the addition of the thirteenth month’s salary.
- This advance would help pensioners cover Christmas expenses, although it is not an exceptional bonus.
- This measure may be useful to respect European restrictions on the public budget.
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