Contributions to Italian supplementary pension plans increased by 10 per cent in the first half of 2025, compared to the same period in 2024, to reach €7.8bn, figures from Italy’s Pension Funds Supervisory Commission (COVIP) have revealed.

COVIP's Supplementary Pension Schemes Key Statistical Data showed this increase was greater for negotiated occupational funds (11.4 per cent) and open-ended funds (12.1 per cent) compared to other types of funds.

Additionally, returns on supplementary pension plans for the first half of the year were “generally positive”, despite being impacted by the volatility that characterised financial markets in this half of the year.

Specifically, equity funds recorded average returns of 1.8 per cent in negotiated funds, open-ended funds achieved 3.1 per cent, while branch III individual pension plans (PIPs) recorded a return of 0.3 per cent.

Balanced funds recorded average returns of 1.4 per cent in negotiated funds and 1.7 per cent in open-ended funds, while PIPs recorded negative returns of - 1 per cent. Meanwhile, bond and guaranteed funds saw average returns of around 1 per cent.

At the end of the period, net assets amounted to €77.3bn in occupational pension funds, €39.2bn in open-ended funds and €56.2bn in PIPs.

Over the longer term, from the beginning of 2015 to mid-2025, returns for funds with higher equity allocations were between 4.4 per cent and 4.7 per cent, across all types of pension plans.

Meanwhile, balanced plans earned between 1.6 per cent and 2.7 per cent. The research also showed that most guaranteed and bond funds had average positive returns, but usually less than 1 per cent.

One type of PIP plan, Branch I, which calculates value based on historical cost, not market price, earned an average return of 1.6 per cent. In comparison, severance pay increased by 2.4 per cent over the same period.

When comparing the distribution of results across different types of pension plans and investment lines, the research indicated that all equity segments, and even some balanced ones, performed better than bonds, guaranteed segments, and severance pay.

The research also found that occupational pension funds showed more consistent returns and less variation than open-ended funds and PIPs across all types of investment options.

Regarding membership, Italian supplementary pension plan membership has increased by 2.6 per cent to 11.4 million. However, this includes people who participate in multiple plans simultaneously; the total number of people participating in such schemes stands at 10.3 million.

Broken down, the number of people participating in occupational funds increased by 163,400 (or 3.9 per cent) in June compared to December 2024 for a total of €4.408m, primarily driven by an increase in members from the construction sector pension fund.

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