Italy's pension replacement rates to fall by 17 points

Pension replacement rates are projected to significantly decrease, with a nearly 17-point drop from current retirees' last salary to future retirees' first pension. This decline means future retirees could receive only 64.8% of their final salary, compared to 81.5% for those retiring now, widening the income gap. Italy faces high pension spending despite low wages and a shrinking workforce, exacerbating concerns about future pension sustainability.