You have to think about retirement when you are young!
The proof with the system of redemption of years of studies still in force subject to a future reform.
For the youngest, it is important to redeem these years of study as soon as possible to benefit from the most advantageous rate.
There are two measures to be taken within a limited period, one for young workers, the other for trainees.
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For the basic retirement of the general private scheme, the process is called “retirement payment”.
Currently, the purchase of a quarter for a young person of 20 who enters the working life costs 1,055 euros.
On the other hand, at age 66, the cost for the same quarter amounts to 3,044 euros.
The amortization period is therefore much longer.
Four low-cost quarters for young workers
The price for the term is much lower for a young person who has completed higher education if he submits his application within ten years of completing his studies.
He can thus buy back up to 4 terms at reduced cost for periods of higher education.
At what price ?
The cost of a quarter depends on a two-level purchasing scale which takes into account the age of the insured and the average of his professional income for the last three years.
In any case, the younger the redemption, the lower the cost for the quarter.
Who is concerned ?
All those who have followed higher studies leading to the award of a diploma (admission to grandes écoles and preparatory classes for these schools being assimilated to obtaining a diploma).
Until what age?
It is not the age, but the end date of the course that matters.
The redemption request must be made no later than December 31 of the tenth calendar year following the end of studies.
Example: a graduate in June 2010 will be able to apply between January 1, 2010 and December 31, 2020.
How many quarters?
For the period of higher studies, it is possible to buy back up to 12 terms, but the preferential rate can only cover a maximum of 4 terms.
In addition, we must deduct from this figure the quarters bought back for periods of work placements.
Better to ask the pension fund for an assessment to get an idea.
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What cost?
The price of a quarter depends on the age of the insured, his income and the option chosen.
If the request is made at the age of 29, the price for the term is 1,432 euros (compared to 3,044 euros at the age of 66, the age limit to buy back quarters).
For a 29-year-old who earns around 29,000 euros per year and wishes to buy back 4 quarters, it will therefore cost him 5,728 euros.
Without this allowance, the bill amounts to 12,176 euros!
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“Discount” rate for trainees
For interns, the price of the term is unbeatable!
In 2020, you have to pay 411 euros to validate a quarter of retirement insurance for an internship.
During the two years after an internship, and under certain conditions, a young person can thus validate a quarter of old-age insurance at an unbeatable price.
The contribution can be paid in one go or with monthly installments over one or two years.
Please note: these quarters are not considered as contributory periods but are taken into account to calculate the retirement rate, which can be useful to be at the full rate when you want to liquidate your pension.
Who is concerned ?
All young people who have completed an internship in a company as part of a school curriculum in a higher education establishment, a higher technical school, grandes écoles and secondary classes preparatory to these grandes écoles.
The measure only concerns internships completed since March 17, 2015.
For which period ?
In 2020, each period of two months minimum makes it possible to buy back a quarter.
It is possible to buy back a maximum of 2 quarters.
But beware: these quarters are deducted from the 4 quarters of years of study that young workers can buy back in the ten years following their studies.