Retire with pension at last in Italian city (4,2)
I believe the answer is:
turn in
'retire' is the definition.
(synonyms)
'pension at last in italian city' is the wordplay.
'at last' says to take the final letters.
'in' indicates putting letters inside.
'italian city' becomes 'turin' (I've seen this before).
The last letter of 'pension' is 'n'.
'n' going into 'turin' is 'TURN-IN'.
'with' is the link.
(Other definitions for turn in that I've seen before include "Informally, go to bed or hand over" , "Hit the hay" , "rat on" , "Go to bed (informal)" , "Hand over - retire" .)