Italian pension funds recorded strong growth in the first half of 2026, with total assets allocated to pension benefits rising 4.3 per cent to €273.2bn, according to the latest statistics from Italy’s Pension Funds Supervisory Commission (COVIP).

COVIP said the number of supplementary pension memberships also increased, exceeding 12 million at the end of June 2026, up by 558,000 compared with December 2025. Excluding individuals holding multiple memberships, the total number of members stood at just under 11 million.

The strongest membership growth was recorded by occupational pension funds, which added 311,700 positions during the first six months of the year (up 6.9 per cent), bringing total memberships to 4.826 million.

The increase was largely driven by the implementation of the tacit consent mechanism for permanent public school employees hired from 2019 onwards, the authority stated.

The sector pension fund for school employees recorded 239,800 memberships at the end of June 2026, an increase of 119,600 compared with December 2025.

Italian supplementary pension schemes collected €8.9bn in contributions during the first half of 2026, representing a 13.4 per cent increase compared with the same period in 2025.

Open pension funds recorded the strongest growth in contributions, rising 19.2 per cent, followed by occupational pension funds at 12.9 per cent and PIPs at 10 per cent.

Meanwhile, total assets allocated to pension benefits reached €273.2bn at the end of June 2026, up 4.3 per cent compared with the end of 2025.

COVIP attributed the increase to both a positive balance from pension operations and improved investment performance, which returned to positive territory in the second quarter following a recovery in the value of portfolio securities.

Net assets stood at €86.6bn for occupational pension funds, €45.9bn for open pension funds and €61.9bn for personal pension plans (PIPs) at the end of June 2026.

Supplementary pension schemes also recorded positive investment returns in the first half of 2026, supported by a recovery in equity markets. However, COVIP noted that uncertainty linked to the conflict in the Middle East continued to weigh on financial markets.

Equity-focused investment options delivered the strongest returns during the period, with average returns of 6.7 per cent for occupational pension funds and 6.8 per cent for open pension funds, while Branch III PIPs recorded an average return of 8.1 per cent.

Balanced funds generated average returns of 4 per cent for occupational pension funds, 4.4 per cent for open pension funds and 4.7 per cent for PIPs. Bond and guaranteed funds also recorded positive average returns.

Over a longer investment horizon, covering the period from the start of 2016 to the end of June 2026, average annualised returns for equity-focused investment options ranged between 5.2 per cent and 5.6 per cent across all types of supplementary pension arrangements.

Balanced investment options delivered average annual returns between 2.2 per cent and 3.2 per cent over the same period.

Most guaranteed and bond investment options recorded positive average annual returns over the same period, although these remained below 1 per cent.

Branch I PIPs, which account for assets at historical cost rather than market value, achieved an average annual return of 1.5 per cent, while the revaluation of Italy’s statutory severance pay (TFR) stood at 2.6 per cent.

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