The supplementary pension reform increases tax advantages, introduces new flexible exits and triggers silent consent for new hires. Objective: to integrate increasingly lighter INPS checks
New tax incentives, greater freedom in the use of accumulated capital and an automatic membership mechanism for new hires. Thus in 2026 the pension funds will be strengthened (by the Budget Law). Objective? On the one hand, the need to strengthen the so-called “second pillar” of social security by easing the pressure on the public system managed by the INPS. On the other hand, giving citizens, especially young ones, the possibility of building a supplementary pension capable of compensating for increasingly lower future allowances. The supplementary pension was created with the aim of bridging the gap between the final salary and the INPS public pension. This is why the innovations for 2026 aim precisely to make pension funds more accessible and fiscally convenient.
Pension funds 2026: the deductibility of contributions increases
The first innovation concerns the tax advantage for those who pay into a pension fund. In fact, from 2026 the maximum deductible ceiling will rise from 5,164.57 euros to 5,300 euros per year. In concrete terms, those who have a form of supplementary pension will be able to subtract a greater portion of the contributions paid from their taxable income, thus paying less Irpef. The benefit varies based on income. Those with high incomes can recover over 2 thousand euros in taxes. However, the amounts deriving from the severance pay contributed to the fund remain excluded from the deduction. The new threshold should be valid from 1 January 2026, although many social security rules are expected to come into force from 1 July. And those who started working after 2007 and did not fully exploit the deductibility limit in the first five years will be able to continue to recover the unused tax space in the following twenty years, in some cases deducting up to 7,950 euros per year.
More freedom on exit: flexible annuities and scheduled withdrawals are arriving
The big news then concerns the moment of exit from the pension fund. Until now the dominant model was that of the life annuityi.e. a supplementary pension paid periodically throughout life. From 2026, however, there are three alternatives: fixed term annuity; freely determinable withdrawals and fractional disbursement of the amount. In the first case, the pensioner will be able to choose to receive the accumulated capital over a pre-established period, for example 10 or 15 years. With free withdrawals, however, it will be possible to independently decide how much to withdraw over time based on your financial needs. The split disbursement will finally allow the capital to be collected in several tranches, leaving the residual part invested in the pension fund. The change means giving families greater liquidity and more freedom in managing their accumulated savings.
How the taxation of pension fund income will change in 2026
The tax treatment also changes depending on the method chosen. For those who choose a fixed-term annuity and free withdrawals, the most advantageous regime will apply: initial rate of 15% and progressive reduction up to 9% based on the years of stay in the fund. However, the taxation foreseen for the fractional disbursement of the amount is less convenient. Here the initial rate is 20% and then a possible reduction up to 15%. The new rules should apply to amounts accrued since 1 January 2007, the year of the major supplementary pension reform. For sums accumulated previously, the old provisions will continue to apply.
Silent consent is triggered: what happens to severance pay from 1 July 2026
It leaves from 1 July 2026 the new silent consent system for new hires. Anyone who starts a new job will have 60 days to decide whether to: leave the severance pay in the company or independently choose a pension fund or join a different form of supplementary pension. If the worker does not communicate any choice, the severance pay will be automatically transferred to the negotiated pension fund provided for by the relevant collective agreement. This aims to increase the number of members of pension funds, which is still far from the objectives set.
