Brazilians can contribute to the Italian pension system
A retirement in Italy is known as Pensione di Vecchiaia, that is, old-age pension. To be entitled to this benefit, the citizen must contribute to Italian social security and meet the requirements imposed by the government, which requires a minimum age and period of contribution.
In the 15th century, thousands of Italians decided to try a life in Brazil, mainly in the state of São Paulo. It is estimated that XNUMX% of the Brazilian population have the right to Italian citizenship, that is, 30 million people. The process to obtain this right recognized is time-consuming and bureaucratic, which is why the queue to apply for citizenship at consulate from Italy in Brazil is 112 thousand Brazilians and can take up to 10 years.
Who gets what they dreamed of? passport experiences a second challenge: searching for a job in Italy. Generally, people get an opportunity in the country through referral. They join Facebook and WhatsApp groups, make friends with other Brazilians who already live in Italy and stay up to date with opportunities.
After working on Italian soil, it is possible to retire. The process involves rules that vary depending on the worker's profile. Furthermore, the minimum retirement age is readjusted every two years, in order to adapt to the population's life expectancy. The body responsible for granting retirement in Italy is the Istituto Nazionale Previdenza Sociale (INPS).
Who is entitled to retirement in Italy?
To be entitled to retirement in Italy, workers must meet the prerequisites below:
- Be resident in Italy;
- Have at least 20 years of contribution;
- Be 66 years and 7 months old (men and women);
- Not having an employment relationship.
International agreement between Brazil and Italy
There is a bilateral agreement between Brazilian and Italian pensions. Therefore, a Brazilian can retire in Italian territory by adding the contribution time in both countries. The INSS contribution time will not be lost.
Imagine a Brazilian who managed Italian citizenship and moved to Italy. There, he got a job and worked for a few years. He can enter Italian retirement when he reaches the minimum contribution period, adding the years he contributed to the INSS and the INPS.
An interesting tip for Brazilians working in Italy is to continue paying INSS in Brazil. Thus, by adding the time in both countries, it is possible to reduce the contribution time in Italy. Don't understand yet?
See a practical example:
Giovana worked with a formal contract in Brazil, therefore, she has 10 years of contributions to the INSS. She moved to Italy and continued paying the Brazilian social security installments, in addition to contributing to the INPS to be entitled to the Pensione di Vecchiaia. At the end of five years, she can complete the minimum contribution period to retire in Italy, as she can spend the 5 years of contribution in Brazil plus the 5 years of contribution in Italy.
In the case of a Brazilian who contributes to Italian social security and then returns to Brazil, there is the possibility of starting retirement in Brazil. To access this modality, the citizen cannot be Italian and must have contributed for 20 years. This option exists to encourage the return of foreigners to their countries of origin and thus not overload Italy's healthcare system.
To better understand the international agreement, you can access the National Social Security Institute page.
I am already retired and want to live in Italy. What is needed?
Brazilian retirees who wish to live in Italy can receive the benefit through an Italian bank, but they need to be prepared for a large discount. The government keeps 25% of the value. For this reason, it is recommended to continue receiving payments through an account in Brazil and make the transfer in euros via PayPal or TransferWise.
For your retirement money to pay off, it's worth choosing a cheap Italian city to live in. Recommended places are Turin, Bologna, Naples, Tivoli, Arezzo and Pisa.
How to apply for retirement in Italy?
Anyone who meets the requirements to retire should look for the INPS unit in the city where they live in Italy or Café Patronato.
Pension Reform in Italy
In 2011, Italy went through a crisis that shook public coffers. For this reason, it was necessary to reform the pension system. Paying pensions in Italy cost around 200 billion euros per year. Benefits are paid for with contributions from around 22 million workers. After the reform, the Italian government estimates that it will save 80 billion euros by 2022.
Changing the minimum age and creating citizen income
The current Italian government has reduced the minimum age for retirement by five years. Furthermore, it created financial assistance known as “citizen income”, which works as a type of Bolsa Família for the poorest families in the country.
With the pension reform, called “Quota 100”, citizens can retire at the age of 62 and with 38 years of contributions.
Citizen income is intended for Italian families living below the poverty line. More than five million people will be served, including Italians in the country for more than two years and foreigners who have lived in Italy for at least 10 years.
The amount of aid, paid by the Italian government, is 780 euros per month. This amount may be increased or reduced depending on the family's situation. Payments are made over a period of 18 months and beneficiaries cannot refuse more than two job opportunities during that time.
Still have questions about retirement in Italy? Access the website https://www.inps.it/ and see more information.
Originally published in Via CareeraBy Isabella Moretti
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