A snapshot of contemporary Italy, as revealed by a range of demographic and financial data, shows an Italy of elderly people who are, in many cases, well-off and well-educated, and of young people who feel uncertain about their future and are increasingly leaving, albeit reluctantly, in search of better working and living conditions. And it reveals a country which, whilst rightly celebrating the Republic’s 80th anniversary and its achievements in terms of democracy, development and prosperity (all reasons to be proud, whilst appreciating the values and essence of that ‘gentle patriotism’ we discussed in last week’s blog), cannot help but be concerned about the social and economic clouds gathering on the horizon.

Firstly, let’s consider the growing wealth gap between generations, particularly with regard to property ownership and savings invested in financial assets. Bankitalia has expressed concern over the ‘widening generational gap’ (Il Sole 24 Ore, 31 May), as highlighted in Governor Panetta’s report. Between 1991 and 2022, the proportion of wealth held by older households increased to 32%, while that held by younger households decreased to 4%. This has significant implications for the economy and the distribution of resources.

At the end of 2025, household net wealth stood at 12,326 billion, equivalent to 8.5 times disposable income, up from 8.3 times in 2024.

Where will all that money end up? The Bank of Italy refers to a significant intergenerational transfer: the elderly will die and the young will inherit, which will have major implications for economic behaviour.

As we know, families have traditionally acted as a social safety net for younger generations entering the labour market later than before, who are now facing serious difficulties buying or renting a home and covering the costs of daily life.  How will they behave as heirs?

An important issue to address is  how we can channel savings into productive activities within the Italian economy. Another issue to consider is how we can address the problems caused by large-scale investment in first and second homes in a country where young people need housing.

This phenomenon is at the heart of the issue of limited social mobility in Italy. The favourable tax treatment of inherited assets does not encourage social dynamism or initiative.  Generations of heirs and trust funders have historically shown little interest in profit from business investment and a great deal of interest in unearned income. In other words, Italy risks intensifying social rigidities in the short term.

This longevity, the increase in life expectancy (to 81 years for men and over 85 years for women), raises issues that are far from trivial. There is a need for assistance, care and healthcare support for elderly people who are unable to look after themselves, as well as for those who are ill. But there is also a need for the involvement of one or more generations of former workers in the general interests of the community, as many of them do not want to feel useless or excluded from productive and social processes.

Why not use those skills to provide training for the younger generation within the company? Provide opportunities and incentives so that their professional skills can be put to good use across all social initiatives in the third sector. Sodalitas, an association of former managers affiliated with Assolombarda, offers a number of recommendations in this regard. Should we open the doors of universities even wider so that older generations do not suffer unduly from the digital divide imposed by the transformations of the digital economy when they return to study?

The social and political dimension is significant. What should be done about the elderly, particularly in large urban and metropolitan areas, to prevent their growing isolation, exacerbated by a sense of uselessness, and the resulting social and political divisions, including in terms of their active or passive participation in political life, even if only through voting?

Italy cannot afford such a massive waste of resources. It is in the midst of a demographic freeze and facing serious shortages of the professional skills and capabilities essential to boosting its productivity.

Therefore, it is worth taking this discussion further and exploring the idea of a genuine intergenerational pact. This could have a significant impact within companies, through initiatives such as mentoring, training, job shadowing, sharing experience and extending employment relationships (including part-time contracts). It could also have an impact in preserving heritage and public assets, managing archives and protecting the environment and historical heritage.

For a well-balanced democratic society, teachers must be able to pass on knowledge effectively (AI alone is not enough). Older people know what they’re doing,  and young people understand things that are a mystery to older people, starting with the use of AI.  Older people have the strength of memory and experience,  while young people have skills in new technologies.  Why not  combine these to create a cross-pollination of ideas?

‘The demographic challenge:  universities are gearing up.  In 20 years’ time, the number of 19-year-olds will be 37 per cent lower,’ reports an investigation by Il Giorno (24 May). Discussing the rise in training courses for workers, the article states that ‘the future lies in lifelong learning’. And yet, as mentioned in the blog post of 4 May, the number of people over the age of 40 returning to university is already on the rise.

The whole world is in flux. The financial sector is also taking note, with proposals for the prudent investment of savings specifically linked to longevity.

The average age continues to rise, and according to demographers, this trend is set to continue.  While we cannot add days to our lives, we can add life to our days, and we now know that this life can be very active, fulfilling, socially useful and productive. This is a major political and cultural challenge.

It is true that we have ageing leaders in Italy and across Europe, in both politics and business. The generational transition that is already underway is proving to be no easy task. Older people have a sense of history and claim to feel a responsibility to shape the future, but they are often reluctant to stake their future on it. Instead, they focus on the present in the hope that it will last a long time.

This is also a subject worth reflecting on, without resorting to simplistic generalisations or prejudices. We should reflect  on the  relationship between age and responsibility, the meaning of history,  our ability to look to the future,  and the so-called ‘future of memory’. This calls for older people who can serve as mentors of experience and life, and as wise advisers, and for young people who are capable of working towards a better social and political situation.

(photo Getty Images)