Participation in Italy's supplementary pension system rose to almost 40 per cent of the workforce in 2025, but women continue to lag behind men, according to the latest figures from Italy’s Pension Funds Supervisory Commission (COVIP).

Its annual report for 2025 showed that membership of supplementary pension schemes reached almost 10.5 million at the end of 2025, up 4.8 per cent from 2024, representing 39.9 per cent of Italy's workforce.

However, COVIP pointed to participation imbalances as men accounted for 61.2 per cent of members, compared to 38.8 per cent of women. Regional disparities were also apparent, as the participation rate in northern Italy was 57.3 per cent, while many southern regions remained “significantly below average”.

More positively, COVIP found that the participation of younger workers is increasing. Those under 35 represented 20.8 per cent of members in 2025, up from 17.5 per cent in 2020.

At the end of 2025, 273 supplementary pension arrangements were operating in Italy, comprised of 33 negotiated pension funds, 38 open pension funds, 71 individual pension plans (PIPs), and 131 pre-existing pension funds.

Although membership has increased, the number of pension schemes has continued to decline due to consolidation. Compared with 1999, the number of arrangements has more than halved, largely due to a reduction in pre-existing pension funds from 618 to 131.

In addition, assets held by supplementary pension funds increased by 7.7 per cent during 2025 to €262bn, equivalent to 11.6 per cent of GDP and 4 per cent of Italian households' financial assets.

Contributions totalled €22.4bn during the year, up 8.7 per cent on 2024. COVIP said the gender contribution gap also remained, with women's average contributions 16 per cent lower than men's.

During 2025, pension funds paid €5.5bn in lump-sum pension benefits and €347m in annuity payments. Withdrawals totalled €2.1bn, while advance payments reached €2.8bn. Temporary early retirement income benefits (RITA) amounted to around €2.8bn, mainly from pre-existing pension funds.

Regarding investments, COVIP said 55.8 per cent of pension fund assets were invested in government bonds and other debt securities, excluding insurance reserves and internal pension funds.

Total equity exposure, including investments held through collective investment funds, rose to 32.9 per cent, up 2.4 percentage points from 2024. Property investments accounted for less than 2 per cent of total assets and were concentrated mainly in pre-existing pension funds.

Meanwhile, investments in the Italian economy, including government bonds, securities issued by Italian entities and real estate, totalled €43.9bn, representing 19.3 per cent of pension fund assets, unchanged from 2024.

COVIP said pension funds are increasingly exploring alternative assets such as private equity, private debt and infrastructure funds, often through joint investment initiatives, to diversify portfolios and support Italian businesses.

All pension fund categories delivered positive net returns after fees and taxes.
Equity funds generated the strongest performance, with average returns between 7.5 per cent and 10 per cent, while balanced funds returned between 3.5 per cent and 5.5 per cent. Bond funds also posted positive, though more modest, returns.

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