As of 2023–2024, the average gross annual pension in Italy is approximately €19,976 (€1,500–€1,600 monthly, assuming 13 payments). The minimum monthly pension for those over 75 was increased to roughly €600, while the general minimum is closer to €550–€600, adjusted for inflation. The system is based on 20+ years of contributions and a retirement age of 67.
Italian Minimum Pension Supplement
For people with a below-minimum pension (EUR 507.42 per month), the system offers social payments ( Minimum Pension Supplement) to reach a total of EUR 6,596.46 per year.
Iceland, Denmark, and the Netherlands have the most financially sustainable pension systems due to well-balanced contribution rates and participation.
RETIREMENT PENSION: In accordance with Law n. 335/95, workers are entitled to a retirement pension if they are over 57 and have made pension contributions for at least 35 years or, alternatively, for at least 40 years, regardless of their age.
OLD-AGE PENSION: following the coming into force of Law 335/95, you have a right to apply for an old-age pension provided you are an employed person, have paid at least 20 years' contributions, and are 65 years of age if you are a male, or 60 years of age if you are a female.
The Italian pension system
Historically, Italy's state pension has been considered generous. According to one report, Italy offers one of Europe's best schemes (in Spanish) in terms of pension income relative to average salary.
Yes, the Italian region of Tuscany has a program offering grants up to around $32,000 (€30,000) to help people move to and renovate homes in depopulated mountain areas, part of their "Residenzialità in Montagna 2024" initiative, aiming to revitalize these communities by covering up to 50% of purchase and renovation costs for properties in towns with under 5,000 residents, requiring you to make it your primary home.
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Denmark is set to have the highest retirement age in Europe after its parliament adopted a law raising it to 70 by 2040. Since 2006, Denmark has tied the official retirement age to life expectancy and has revised it every five years. It is currently 67 but will rise to 68 in 2030 and to 69 in 2035.
Belize can be one of the cheapest places to retire in the world. The area around Ambergris Caye can be expensive, but the rest of the country is a bargain. Real estate and daily living prices here will enable you to enjoy the good life at a very affordable price.
The country with the best State Pension in Europe is Iceland, where the average pension expenditure per beneficiary is €35,959, or around £30,251. This figure is more than double the average State Pension in EU countries of €16,138 (£13,580) and also the full UK State Pension of €14,227 (£11,973).
Italy's 7% tax rule is a special flat tax regime for foreign retirees who move their tax residency to small towns in Southern Italy, allowing them to pay a flat 7% on all their foreign-sourced income (pensions, rentals, dividends, etc.) for up to ten years, instead of standard progressive rates, as an incentive to revitalize southern regions. To qualify, you must not have been an Italian tax resident for the past five years and meet relocation criteria, with benefits including exemption from wealth taxes on foreign assets and simplified reporting.
Early retirement schemes have been extended in Italy in 2024, but with tighter eligibility conditions. Some schemes may expire from 2026. The statutory retirement age is 67 and the early retirement age is 64.
Italy's National Health Service automatically covers all citizens and legal foreign residents. It is funded by corporate and value-added tax revenues collected by the central government and distributed to the regional governments, which are responsible for delivering care.
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According to the Italian tax law, both Italian residents and non-resident individuals are subject to taxation in Italy, but on a different basis.
How much do I need in my pension pot for £1,000 per month income? Using the same methodology, £1,000 per month is £12,000 of income each year. If you were again withdrawing from your pension pot at 4% each year, you would need a total pension pot of £300,000 to provide an income of £1,000 per month in retirement.
From 20 September 2025, the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $321,500 – for homeowner couples the number is $481,500. The numbers for non-homeowners are $579,500 and $739,500 respectively.
The city of Cumberland, Maryland, offers a relocation package of up to $20,000 (cash plus renovation/down payment match) to attract new residents, especially remote workers, to revitalize the area. While not a state, this specific city program within Maryland provides significant incentives, matching $10,000 cash with up to $10,000 for home improvements or new construction for those moving from outside Allegany County and committing to residency.
Get paid to move to Italy in these 4 places
The elective residence visa allows US citizens to live in Italy without working. Applicants must show proof of sufficient passive income (typically €31,000+ per year for individuals) and comprehensive health insurance. Employment or business activity in Italy is not permitted under this visa.