Italian law now requires new private‑sector employees to choose within 60 days whether to keep their TFR with the employer or move it to a pension fund. The decision can affect retirement income by up to 60 %, influencing household savings, pension fund assets, and employer administrative costs. Italian private‑sector workers, employers, pension fund managers, and the Ministry of Labor. Employees will make their choice over the next two months; pension providers may see inflows, and regulators will monitor uptake to assess the policy’s impact. From July 1, 2026, new hires in Italy’s private sector must decide within two months whether to leave their TFR (trattamento di fine rapporto) with their employer or transfer it to a pension fund. Simulations by the research firm smileconomy indicate that moving the TFR into a fund could increase the eventual pension by as much as 60 % compared with keeping it in the company. The measure aims to boost long‑term retirement savings while giving employees immediate flexibility over their severance accrual.
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