Il Redemption of degree This is a tool that allows you to. Turn your university years into fellowship years.. This means that it is possible to combine your contribution position for calculation purposes and all pension related benefits. Obviously, redeeming a degree requires having completed a course of study (university, degree or equivalent service) and not necessarily a stable job. In fact, the application can also be submitted by unemployed persons. We are talking about people who, at the time of application, have never registered for any compulsory social security and have not started working in Italy or abroad. Having said that, here’s how degree redemption works in detail with traditional and subsidized options.
Degree Redemption in 2024: Latest Data
Il Discounted redemption value from Degree This is due to increase in minimum contribution in 2024. For 2023, for example, the cost of redeeming an annuity was 5,773.32 euros, compared to 6,076.95 euros today. However, despite this increase, degree redemption is attractive to many because it allows, in some cases, early retirement and also because it serves as a later recalculation.
However, the operation is only worthwhile if you have the goals just outlined in mind: to retire early and increase the allowance you receive. However, in the first case, you should first understand whether it is possible to bring forward your retirement date based on your contribution date. If this is not possible, paying the ransom may not be worth it.
If the goal is to try to get a higher allowance instead, the costs and benefits have to be properly assessed.
Here are some specific examples of redemption. In the case Degree was taken By 1995 And work started after 1996, you can apply. Easily redeemed For years prior to 1996 but the “1996 worker” status will expire. This means that with it will disappear the need for an early contributory pension, which is possible today at the age of 64. In some cases, as he explains Courier there may be a risk of quitting later.
Who has Worked till 1995. Can instead say to redeem the degree but withContribution option. This means that the pension will be recalculated with the contributory system.
Hence it is of prime importance before making any choice, especially in such cases, to seek the help of a consultant.
How much does a degree redemption cost?
As he explains. INPS, The cost of redeeming the degree is based on the rules governing the payment of pension with salary or support system. In the latter case, for redeeming periods starting from 1996 (January 1) you should know that the charge is determined as such. The contribution rate applicable at the time of submission of the application applies to the taxable salary for at least the most distant twelve months.
Here is an example of one. Calculation of general contribution. An employee applies on 31 January 2021 to redeem a 4-year degree from 2002 to 2006 into the Employees’ Pension Fund of Compulsory General Insurance. Well, if we consider the gross salary of 32,170 thousand euros in the last twelve months of the low period, it costs 42,460.40 euros.
The formula is as follows: 32,170.00 euros x33% = 10,616.10 euros x 4 years = 42,464.40 euros.
instead, Compensation system In case the study years are before 1996.
Regarding the The easy way For those studying within 1995 or after 1996 in the contributory option, a fixed fee must be paid. The latter is set based on the number of years you wish to redeem. In the event that the study period is prior to 1996 as well as the commencement of work, the option of redemption is available but only with the participation method with the cost of redemption, which amounts to 6,076.95 euros. Finally, you can also request redemption of the degree for a fixed fee and in this particular case you pay the same amount as the facility provided.
Can the degree be waived?
For those wondering what if Degree redemption is deductible Totally from your income, the answer is yes. It is also deductible for self-employed workers on flat rate scheme but the saving for them is less. This is because the tax rate is 15% (fixed). Finally, we would like to remind you that to redeem your degree, you can also choose the option of up to 120 monthly installments at which age your pension will accrue. If you choose this option, no interest will be charged.
What can be redeemed?
We talked about degrees of redemption but not exactly what redemption can be achieved. Well, you can recover your university years like this:
- Courses lasting not less than 2 years and not more than 3 years. These are the so-called university diplomas;
- Courses of duration not more than 6 years and not less than 4 years. In this case we are talking about degree diplomas.
- Research doctorates with programs governed by specific regulations;
- Diploma in specialization obtained after graduation on completion of a course lasting at least two years;
- First-level degree, single-cycle master’s degree and two-year master’s degree;
- Diplomas awarded by the Institute of Higher Artistic and Musical Education (AFAM). However, the non-academic year is excluded. By choosing this formula, it is possible to redeem only a part of the study path instead of the entire course.
The application can be sent online only by connecting to the official website of INPS or by going to a guardian or an intermediary of the institution. Alternatively, you can also call the Contact Center from a landline at the toll-free number 803.164. From a mobile phone, however, the number to dial is 02.164164, the prices of which vary depending on your telephone provider.
