Loans to pensioners and transfer of the fifth of the pension in agreement.

Withdrawal from work allows you to receive your pension in relation to the payments you made during your career. Often, however, the amount received is not sufficient to support all expenses, especially if you are in a position to face an extraordinary economic commitment, not foreseen. There are many solutions proposed by lenders to provide  loans to retirees , but the best is the  transfer of the fifth of the pension,  in this article we explain what you need to know and why this is the best financing on the market and what are the   age limits .


Payment of the installment with the assignment of the fifth of the pension

You do not need bank RID or postal bills to pay and keep in mind the dates because it will be the INPS or your institution to directly provide the payment by deducting it from your coupon. You will receive the net monthly pension less the amount allocated to the loan. The  assignment of the fifth of the pension  thus allows to have the guarantee of punctual payments of the various installments.

The compulsory insurance with the assignment of the fifth of the pension

When you decide to sell one-fifth of your pension you must necessarily take out a  life insurance policy  that is included in the contract. This is a protection formula for your family members who will not inherit the residual loan and for the credit institution, in case of death of the client, because it is fully repaid by the insurance company.

The insurance for this type of financing is always included in the contract and mandatory by law so it is included in the installment that you decide to pay and no additional cost will be required. You will have to provide for the signing of the contract for insurance coverage at the same time as entering into the loan. In the past it was Inpdap that provided policies for retired people or public employees, but today every bank or financial institution inserts an insurance policy issued by a private company in all contracts.

Loans to pensioners: what is the transfer of the fifth of the pension?

The transfer of the Fifth of the Pension is a non-finalized loan with a fixed rate dedicated to private and public pensioners of any social security institution. The  assignment of the fifth of the pension  is marked by a monthly installment that can not exceed 20% of the net sum received per month, it will be in fact the social security institution to issue a document called ” Certification of Transferable Quota ” in which it communicates to the pensioner and bank or financial institution which will be the maximum transferable installment to proceed with the loan.


In addition, its peculiarity is the payment, which takes place through a direct deduction, in fact the social security institution thinks to pay the installment directly to the credit institution that provided the loan. This is a guarantee for the bank or financial institution about the  solvency  of the applicant and this allows you to practice more advantageous conditions for the pensioner interested in obtaining a loan that includes, by law, a life insurance policy to sleep peacefully.

Calculate the amount of the maximum installment is therefore very simple in the initial phase, in fact you have to consider about 20% of the net pension to understand how much will be able to pay the maximum installment that you can pay but you must always take into account the fact that it will be the INPS or your social security institution to communicate with the maximum precision which will be the correct installment to the cent by issuing the  Certification of Transferable Quota .

Comparing the assignment of the fifth pension to the classic personal loans there are no comparisons, it is the  best loan on the market  for those seeking  liquidity , a  low rate ,  single-signature  and has exceeded 65 years of age.

The  transfer of the fifth of the pension  is an unfinalized loan because you do not have to give any justification for the reason for which you apply for the loan. It does not necessarily have to be money spent on a specific purchase, you can use the money as you prefer and then you do not have to submit the cost documents that you will support with the amount paid out. The loan guarantee consists, for the bank or financial institution, of life insurance that will pay in the event of departure of the beneficiary without leaving any heirs unpleasant surprises, so you do not need to have to commit the goods or find a guarantor and the only limit of amount is dictated by the maximum payment you can pay. With the transfer of the fifth of the pension you will not even worry about the deadlines, because it will be the INPS or your social security institution to take care of paying the installment on expiry, directly withholding your pension. These characteristics demonstrate why this type of financing is the best market formula for retired people.

The procedure for the assignment of the Fifth Pension in the Convention

After checking if the social security institution has convention to obtain better conditions, select the institution you wish to contact and proceed with the following steps. 

The loan application must be submitted by providing only a few documents such as:

your identity card;

the valid health card;

your bank account details or the postal booklet to receive liquidity when the loan will be provided

Normally the Bank or Finance proceeds to request from the social security institution all the documentation needed to prepare a precise and reliable estimate. 

Collecting all the documentation, the bank will examine the application, mainly to verify that you have the requisites to access this type of financing and that the amount of your pension allows the application of the assignment of the fifth. If you respect the criteria at that point you will receive a quote showing all the financial data, if the offer is to your liking, you will receive a copy of the contract together with the insurance policy to   be signed. We advise not to trust to provide an estimate without having collected all the documentation to avoid unpleasant surprises in the contract phase. 

Once the contracted loan agreement has been signed  and when the insurance policy is issued, the Bank or the financial company will follow all the procedures to obtain the required liquidity. The copy of the loan agreement, together with the  obligatory insurance policy,  will be transmitted electronically for the “Validation of the Financial Plan” with a  Telematic notification  requesting the  Validation of the Financial Plan  also known as the  Approval Act.

Upon receipt of confirmation from the Social Security Agency, the bank transfer to your current account of the agreed amount will be made or, in the case of postal book holders, a non-transferable check sent to you.