Italian pension with contributions in Italy and abroad: how they add up

The principle: contributions aren't transferred, they're "counted"

When you work in several countries, each one keeps the contributions you paid there and eventually pays you its share of a pension. What differs, depending on the countries involved, is whether years worked elsewhere can be added together to meet the requirements. This is called international totalisation; it's free, but it only exists where there's an agreement.

Case 1: EU, EEA, Switzerland and the UK

European social security regulations apply (notably Regulation 883/2004; for the UK, the post-Brexit agreement). In practice:

• years worked in the different countries are added together to meet each country's requirements;
• each country pays a pension in proportion to the contributions paid there (pro rata);
• you generally need at least one year of contributions in a country for it to count them.

Example: 8 years in Germany and 14 in Italy. On its own, Italy wouldn't reach the 20 years needed for the old-age pension; adding the periods together, it does. At 67 you receive an Italian pension based on your 14 Italian years and a German one based on your 8 German years, under German rules.

Case 2: countries with a bilateral agreement

Italy has social security agreements with several non-EU countries, including the United States, Canada, Australia, Brazil, Argentina, Uruguay, Venezuela, Mexico, Israel, Tunisia, Turkey, South Korea, San Marino and some Balkan countries. The mechanism is similar to the European one, but the rules (for example the minimum period) vary from agreement to agreement and need checking case by case.

Case 3: countries with no agreement, such as Thailand

With many countries, including Thailand, there is no social security agreement. The consequences:

• contributions paid in the foreign country are not added to your Italian ones;
• your Italian pension depends only on Italian contributions: 20 years for the old-age pension at 67 (with the minimum amount if you're under the contribution-based system), or, if you're fully contribution-based, 5 years at 71;
• if you have few Italian years, you risk not meeting the requirements: it's worth knowing early. See the guide on the pension with 20 years of contributions.

If you move abroad as a pensioner

• Your INPS pension can be paid abroad: INPS pays it through an appointed bank and asks for a proof of life once a year.
• Tax depends on two things: the type of pension (public-sector pensions, for example for former civil servants, often follow different rules from private ones) and the double taxation treaty between Italy and your country of residence. Check both with a professional in each country before moving your tax residence.
• Plan the bridge: if you move before pension age, the years until your pension starts have to be funded from savings. The FIRE simulator with state pension helps you size it.