Pensions: these 5 cases where it is interesting to buy back your quarters

With the pension reform, one can wonder how to reach full retirement as soon as possible. In some cases, buying back quarters can be a good solution.

If you have done long studies, internships or have experienced a period of unemployment, you can buy back your terms. Since 2003, the year of the Fillon reform, it has been possible to buy back a maximum of twelve quarters. An interesting option, because it allows you to benefit from a tax advantage, the contributions can indeed be deducted from taxable income. However, even if you buy back all your quarters of retirement, you will not be able to leave before 62 years old the legal age of the minimum departure which will be raised to 64 years old once the reform comes into force.

It is possible to request your Individual Status Report (RIS), which is a career statement summarizing all of your rights. You will be able to know the number of quarters contributed, the points acquired for your supplementary pension, the list of schemes to which you have contributed and the income for which you have paid contributions. This will allow you to determine your retirement age and the amount of the latter.

Entrepreneur or self-employed

In the case of the business manager or auto-entrepreneur, you can combine the “Madelin” buyout and the “Fillon” buyout. The formula for calculating a “Madelin” quarter looks like this: base x rate of contribution to the basic pension scheme in force on the date of the request x age coefficient, according to the retirement site in plain English. In addition, the cost of the “Madelin” buy-back is normally lower than the cost of a quarter bought back under the general scheme. It is possible to make a simulation in your personal space of the Retirement insurance.

employee in a small business

For the employee of a small company, it may be interesting to buy back his quarters, but not if you are an employee of a large company. Indeed, a large company takes care of idle time, so this would be a miscalculation.

student internship

The internship periods that can be redeemed are the compulsory internship periods that you completed during your studies. According to the public service site, the conditions for redemption are: that the internship has given rise to a tripartite agreement between the educational establishment, the host organization and you. The internship was carried out within the same entity. The duration is equal to 2 months, consecutive or not, during the same school or university year. The internship gave rise to the payment of a bonus.

Namely, internship periods in a professional environment for which you have signed an employment contract and not an internship agreement have given rise to pension contributions and are not affected.

To count internship periods, a period of two months gives rise to the validation of a quarter. When the training period extends over two successive years, it may be considered as having been carried out during one or the other of these years. You can buy back a maximum of two terms for the internship.

full rate sooner

To leave at full rate as soon as possible, you can contact your employer. If you are 62 years old (64 after the reform), he cannot retire you and the cost of a senior employee is high for a company. This is why companies offer a buyout to their employees as part of a voluntary departure. The other alternative is to negotiate a contractual termination by agreeing to retire from the age of 62 (64 years after the reform) in return for the payment of an exceptional bonus intended to buy back your quarters.

This premium will be taxable like any other premium. But as the sums paid to redeem quarters are deductible from your taxable income, the operation will be fiscally neutral.

refusal of a contractual termination

If your employer refuses you a contractual termination, it is interesting to buy back your quarters. Once you are over 62, Pôle Emploi continues to provide assistance until you receive the full rate.

To retire, you must have completed 172 quarters, or 43 years of work. Otherwise, if you decide to retire without all your quarters, your pension will suffer a discount, it will be permanently reduced. “To have a full pension at age 62, today you will have to have started working at age 19,” explains Jean-François Chauffeté, founder of EOR.

The process to buy its quarters must be made between 20 and 66 years old, beyond the full rate of the pension will be validated automatically. The cost of redemption depends on age and income, the younger you are the cheaper it is.