The article provides a summary of the 17th Annual Report by the Italian Social Protection Institute (INPS). The report sheds light on some key challenges for the Italian pension system, and provides three major insights. First, due to the long phasing-in period of the reforms that were introduced over the last decades, pensions are still largely calculated on the basis of the defined-benefit formula. As a consequence, the system has maintained its traditional characteristics (high level of spending, low redistribution). Second, demographic trends - particularly the projected decline of the Italian population - have put further pressure on the system. Third, the reforms proposed by the current government are expected to increase pension outlays and put its sustainability at risk.