Not a bonus for newborns, but an investment for the future. Thus the Newborn Fund was introduced, a “piggy bank” powered by the State which will pay an initial welcome fee of 100 euros which parents will be able to increase from year to year. The measure was strongly supported by the Minister of Economy Giancarlo Giorgetti and welcomed with satisfaction by the majority.
Booklet for new borns, which can be increased from year to year until they reach 18 years of age, changes the way of saving and providing pensions. Let’s see how it works and what the limits are.
Newborn fund: what is it
The 2027 Budget aims at families and young people and a tool that unites these two macro-areas is the 100 euro social security fund for newborns.
In fact, the text introduces a fund for newborns starting from 2027. Prime Minister Giorgia Meloni, illustrating the measures of the 2027 budget law during the press conference, declared:
For every child born, the INPS will open a social security position as if it were a small piggy bank into which the State will initially pay a “welcome” amount of 100 euros, but in subsequent years the parents will be able to increase it.
How does the booklet work?
This is a real social security fund that starts with a treasury of 100 euros for newborns from 2027 up to their 18th year of age.
In practice, as can be seen from the words said in the press conference, it is a fund of €100 placed by the State in a piggy bank opened by the INPS.
A “piggy bank” that can be fed by family members and that will be used by newborns, starting from 2027, when they reach 18 years of age, for some expenses.
The amount, Meloni specified, will not be taxable, seized and can only be used upon reaching the age of 18.
Attention: there may be exceptions, but the approval of a guardianship judge would be needed. We are waiting for the official text to understand what these “exceptions” refer to.
What expenses?
From the age of 18, the child for whom this piggy bank has been opened will be able to spend the accumulated money on certain expenses.
These are school or university expenses, but the funds can also be used as a supplementary pension instrument.
Gabriele Fava, president of INPS, was among the first to comment favorably on the idea of a fund for newborns. Above all on the possibility of using the sum as a supplementary pension instrument:
It is a choice that changes the history of Italian social security. Until now, the pension began with the first job, from today it starts from birth.
Fava explained that in the contributory system the pension is the result of what is accumulated throughout one’s life and a decisive factor is precisely time. “He who starts early gets farther,” he commented, explaining how 18 years of savings, which grows and is capitalized, are worth much more than any late intervention.
