The calculation of the installment transfer of the fifth of the pension can be carried out in various ways. The final consumer interested in this product could use special software. These programs allow, once indicated the required data, to know the amount that could be obtained.
How the software to calculate the installment work
Let’s take a concrete example to simulate the calculation of the sale rate. A software capable of guaranteeing a reliable result must be set up in such a way as to take into consideration the main factors affecting the sale. First, you need to allow the user to indicate the monthly amount of the installment you wish to pay. In secundis, it is also important to refer to the duration of the loan.
In this regard, it is fair to remember that the assignment of the fifth can have a maximum duration of ten years (120 installments). The applicant must then specify the category to which it belongs. If retired, in general, a wording of the type “Retired Social security / Government Agency” will appear. Finally, it is important to specify the type of convention in which your pension falls (Enasarco convention, Social security convention etc.).
Different speech for the assignment of the fifth of the salary. In this case, in fact, the employee, in addition to specifying his status as a worker (state employee, public, private etc.), will also have to communicate the hiring date. It is good, however, to specify that these programs can provide a general indication. The data that come out must, however, be evaluated with due precautions.
The factors affecting the cost of the transfer of the fifth of the pension
An operator who deals with assignments of the fifth must consider several elements. Firstly, for pensioners, we must look at the rates that Social security publishes periodically. In the next few days there should be an update of the rates as, generally, the Social security communicates these data every three months.
We remind you that the loan granted to the customer must be lower than the anti-usury threshold rate for accredited Financial Institutions or must be lower than the conventional rate established for age groups for loans granted by accredited lenders.
More technical, on the other hand, the other aspects that involve the transferable portion and that allow to know if and within what terms a pensioner could benefit from a loan with a transfer of the fifth.
What is the transferable quota
The transferable portion allows to know the maximum amount that the user can transfer from his / her pension for the purposes of repayment of the loan. This amount must never fall below the minimum survival threshold established each year by Social security. In fact, it is essential to safeguard the sustainability of the financing, in order to guarantee the customer to be able to obtain the loan without jeopardizing the expenses that a person has to bear every month.
The pensioner has the possibility to personally ask one of the different Social security offices for his transferable share and then show it to the bank or financial company with which he intends to subscribe the loan. It is possible to avoid this step by having it carried out directly by the bank or financial company but only if it has entered into an agreement with Social security. It is precisely Social security to disclose the list of bodies affiliated to the transfer of the fifth of the pension.
Before being able to submit a reliable quote to the customer, it is also necessary to evaluate the conditions provided by the bank or financial company with which the loan could be subscribed. Then there are the costs of the insurance policy, mandatory by law on this loan. The insurance on the transfer of the fifth of the pension must, in fact, protect the lender as well as the policyholder from the life risk of the beneficiary.
Examples of installment calculation of the assignment of the fifth on the pension
We will try, through an example, to explain how to proceed. The basis for calculation is represented by the monthly net pension. This amount must be multiplied by the annual monthly payments, which could be more than 12. However, it must also be multiplied by 12 because in a year there are 12 installments of the assignment to be paid. Dividing this last result by 5 gives a fifth of the pension which can be used as the maximum transferable portion for the payment of the monthly installments. The difference between the net monthly pension, calculated net of withholding taxes, and the transferable portion for one fifth of the pension must safeguard the minimum pension established annually by Social security and to which banks and financial companies must also adapt.
At this point, we show the concrete calculation to be made to obtain the monthly amount of the installment installment. We start from the monthly net pension and assume that it is established in the amount of $ 1,100. If we multiply 1,100 by 20 and divide the total by 100 we obtain the transferable share, established in $ 220.00. This means that the user may be able to obtain a transfer of the fifth of the pension, returning it in monthly installments of $ 220.00.