Individuals who retire at 67 and were born in 1960 or later enjoy great Social Security benefits in America. They also have the option to apply for the monthly checks as early as 62, in which case they could face a permanent deduction of up to 30%. To enjoy the benefits in your old age, you must accrue at least 40 Social Security credits, earned through tax contributions over 10 years of work.
However, while the American Social Security system works like this, in Italy it’s very different. In 2019, the European country also introduced a program, known as Quota 100, through its National Social Security Institute (NPS) that allowed early retirement at the age of 62.
The scheme, which was phased out in 2011, combined 62 years of age with over 38 years of contributions to issue the benefits. Despite the program now being diminished, people who met the requirements before can still access it.
However, this program, although beneficial to many Italian retirees, also emphasized strict conditions, including no paid work of any kind after retirement. Due to this rule, a 67-year-old man who worked a single day during the grape harvest was forced to pay a $28,320 penalty for violating the condition. Interestingly, he earned only $94 from the single day of work, while losing the equivalent of one full year of pension payments.
According to Corriere di Bologna , the man appealed the decision before the Ravenna court, but it didn’t work out. Ultimately, he was ordered to pay the penalty of a full year of pension income, as per a report.
Quota100 riguarda persone che hanno già un lavoro e che avranno una pensione. Ci sono 4 milioni di italiani che non riescono ad accedere alle cure sanitarie. Se le risorse sono poche io credo andrebbero messe sul sistema sanitario e non sui prepensionamenti. Voi che ne pensate? pic.twitter.com/QX5aFpy3vY
— Carlo Calenda (@CarloCalenda) October 16, 2019
Manuel Carvello, who presented the man as his attorney, explained that the court sides with INPS in most cases like this. “Any ruling would undoubtedly set a national precedent,” the lawyer said. However, he argued that the punishment was severe relative to the offense.
“The rule broadly states that Quota 100 is incompatible with employment, but it doesn’t clearly define the penalty. The more reasonable approach would be to deduct the $94 earned or, at most, withhold the pension for the month the work was done. Withholding an entire year is unjust.”
In the U.S., if you are receiving Social Security benefits before your full retirement age, which is 67, you are allowed to work, but it would definitely reduce your checks. According to the official Social Security Administration (SSA) website, “The amount that your benefits are reduced, however, isn’t lost. Your benefit will increase at your full retirement age to account for benefits withheld due to earlier earnings.”
