Loans for pensioners without assignment of the fifth
Who has landed on this page, is probably a pensioner who has been refused the assignment of the fifth relating to his/her pension. However, as the title suggests, there are cases in which it is the pensioner who freely chooses not to give up the fifth while being able to do it. Let’s recap the reasons for seeking alternative solutions to the transfer of the fifth: 1) they cannot give the fifth in how much we fall into one of the cases for which the law provides for the exclusion of the assignment; 2) we could sell it, but at some point it becomes uneconomical compared to other forms of financing; 3) we want to obtain a larger amount, which cannot be reached by the transfer of the fifth.
Now let’s analyze the three cases, in particular the first one, trying to suggest alternative solutions. Let’s start with the first hypothesis which is the most important as it concerns millions of Italian pensioners, i.e. all those cases in which it is not possible to transfer the pension and for this reason forms of credit are sought without assignment.
Loans to pensioners with non-transferable pension
This is the first case. NB: a series of pension and/or social security and/or welfare treatments are included, regardless of the monthly received (it does not matter whether high or low) or the age of the pensioner as non-transferability is excluded from the current reference laws.
A) Family allowances: these, if paid to pensioners, cannot be transferred; B) Monthly allowances for assistance to pensioners for incapacity: this is essentially the accompanying allowance for which the transfer is precluded; C) Pensions and/or social allowances: these are loans for pensioners with social allowance which, by 2020, is equivalent to 459.83 USD per month, but which from this year (2020) can reach up to 780 USD per month as a supplement the minimum citizenship pension introduced by the Yellow-Green Government, if the requirements are met.
Loans for pensioners with a social pension follow, which instead, again in 2020, is equivalent to 378.95 USD per month: even from 2020, subject to requirements, it can reach 780. In both cases (C and D), they would no longer be non-transferable if above the minimum pension threshold, as we will see below; D) benefits for the exoduses required by law no. 92 of 2012; E) the owners of Ape Sociale (not the voluntary one); F) Loans with a civil disability pension ? Warning! We do not confuse civil disability with work-professional disabilities. Civil disability retired loans: what does it mean? These are welfare services that are released from work and as such cannot be transferred! While all related disabilities deriving from work may be subject to assignment of the fifth, but only under certain conditions, to see which you go on assignment of the fifth with disability pension. Let’s move on to the second case: it occurs when the transfer of the fifth is no longer convenient. As per the premise, there are cases in which, although the pensioner can freely give up the fifth, it is preferable not to give it and seek other financing. These cases are almost always related to the retiree’s advanced age and which make the transfer very expensive as described on loans for retirees up to 90 years to which the interested parties refer.
Loans for pensioners with minimum pension
This is case no. 3 and which affects millions of Italian pensions. Did you know that in mid-2019 out of 18.1 million pensions paid in Italy, as many as 64% of these are under $ 750 per month? Well, it is precisely to these that the third form of financing is addressed to pensioners without transferring the fifth, directed not so much to obtain the financing but to increase it. So, there is a rule, known as ” safeguarding the minimum pension “, which establishes that it is not transferable, in fact, the fifth under a minimum threshold, which for the year 2020 is equivalent to 515 USD. Attention: the aforementioned sum does not refer only to the monthly received by the pensioner but in any case to the minimum sum which must remain net of the deduction deriving from the assignment: it cannot fall below this threshold. In these cases we speak NOT of assignment of the fifth, but up to a fifth that is different.
Let’s take an example of calculation for 2020, which is better than a thousand words: a pensioner, net of social security and tax deductions, has 600 USD per month. Strictly speaking, it could yield $ 120 (1/5 or 20%): and instead not! It can only sell $ 85 which is 14.2%, no longer 20%. In fact, if we subtract the $ 120 from the initial 600 we reach $ 480, that is below the threshold of the minimum transferable pension (515) which must be integrated: how? By lowering the installment that will drop from $ 120 to $ 85, as the minimum pension threshold will not be affected with $ 85 (600 – 85 = 515). This is why we said “up to a fifth”. The problem of loans with a minimum pension is that which does not allow you to obtain certain amounts: with current rates and even wanting to take advantage of the maximum amortization period (10 years) it is difficult obtain loans over 6-7 thousand USD.