28 October 2026
Milan, 28 October 2026 – Longer life expectancy is creating new challenges for retirement planning, requiring individuals to consider how much they will need to maintain their standard of living throughout retirement. This is the central issue highlighted by CFA Society Italy following the publication of the 18th edition of the Marsh CFA Institute Global Pension Index 2026, which assesses 55 pension systems worldwide. The Index evaluates pension systems across three dimensions: adequacy of benefits (40%), financial sustainability (35%) and integrity (25%). The Netherlands leads the 2026 ranking with a score of 85.8, followed by Denmark (84.1) and Iceland (84.0). Singapore, Israel and Australia also receive an A grade.
Italy: Adequate Benefits, but Serious Sustainability Challenges
Italy achieves an overall score of 57.4 (grade C), below the Index average of 65.3. However, its performance varies considerably across the three dimensions. The country scores 70.9 for adequacy (grade B), above the international average of 66.5, and 78.3 for integrity (grade B+). Sustainability presents a very different picture. Italy scores just 27.0 (grade E), down from 27.9 in 2025, placing it 54th out of 55 pension systems, ahead of Austria alone. The contrast between relatively adequate pension benefits and the system's weak long-term sustainability raises important questions about how Italy can adapt to demographic change.
Michela Aimar, Board Member of CFA Society Italy and Co-Chair of its Advocacy Committee, comments:
“The gap between adequacy and sustainability is, essentially, a measure of longevity risk. Today's pensions are financed by the contributions of today's workers, which, however, cover only around two-thirds of the benefits paid by INPS. Within thirty years, Italy could have 57 people over the age of 70 for every 100 people of working age. For younger generations, under the contribution-based system, pension benefits are adjusted to increases in life expectancy: longevity risk is therefore increasingly shifting to individuals. Added to this is the limited uptake of supplementary pension schemes, in which fewer than 40% of workers participate.
“In terms of public policy, the Index calls for clear objectives to be established for the pension system, for funded pension provision to be strengthened, and for greater flexibility to be introduced in retirement age and longevity protection products. One step in this direction would be automatic enrolment in supplementary pension schemes, already adopted in other countries.
“These issues have also been examined by the CFA Society Italy Advocacy Committee in its paper The Economic and Financial Implications of Increasing Longevity: Dynamics, Risks and Management Strategies.
“For professionals, the starting point is to measure and monitor over time the gap between accumulated wealth and the amount needed to maintain the desired standard of living.
“The role of the adviser is therefore changing, moving from wealth manager to ‘longevity coach’, focusing on clients' life goals and family circumstances rather than performance. Investments, insurance coverage and pension provision need to be integrated into a single plan that balances human and financial capital throughout the life cycle. Financial education remains crucial: only 37% of Italians have adequate financial knowledge, compared with the EU average of 41% (Edufin Index 2025 data).”
Longevity Risk Calls for a New Approach to Financial Planning
The findings underline the importance of moving beyond traditional retirement planning towards a more comprehensive approach that considers individuals' financial needs throughout their lives. As longevity increases, retirement planning must account not only for the accumulation of savings but also for the ability to sustain income and financial security over a potentially longer retirement period. This requires greater integration between investment strategies, supplementary pension provision and insurance protection, alongside stronger financial literacy.
Giuliano Palumbo, President of CFA Society Italy, adds:
“The Global Pension Index data confirm that longevity is not a distant unknown, but a demographic variable that requires us to rethink the structure of our wealth planning immediately. At CFA Society Italy, we have long been committed to promoting life-cycle investment models and supporting the evolution of advisers towards genuinely looking after clients' human and pension capital throughout their lives. Pension system sustainability and savers' financial awareness are two sides of the same coin: closing this gap is the central challenge facing our industry if we are to protect the future of younger generations.”
The 2026 Index highlights a fundamental challenge for Italy: ensuring that the adequacy of today's pension benefits can be maintained over the long term, while helping individuals prepare for the financial implications of longer lives. For CFA Society Italy, addressing this challenge requires both sustainable pension policies and a stronger culture of financial planning, enabling savers to make informed decisions throughout their working lives and retirement.
Read the Marsh CFA Institute Global Pension Index 2026