FINANCIAL GLOSSARY: THE ASSIGNMENT OF THE FIFTH

Discover financial education with us.

For us it is important to inform our customers, we realized that often the financial terms are so many to memorize and this creates situations of confusion. It will, therefore, be useful to have points of reference because being informed is your right and makes us live more peaceful.

The first term that we will face today obviously is the: Assignment of the fifth, a type of loan to be paid off with the assignment of one-fifth of the salary reserved for public and retired employees- Ke5ter.

Characteristics of the financing.

The word Assignment of the fifth salary arises from the fact that the maximum amount of the repayment installment of the loan can not exceed the value of 1/5, ie 20% of the continuous net monthly salary. We would like to add that the maximum duration allowed is 120 months and the minimum is usually not less than 24 months. Access to the sale is also possible for retirees whose maturity cannot exceed 90 years of age. It is very important to keep in mind that insurance companies limit the risk with a maximum of 85 years.

It is stipulated by the law that, at the time of stipulation of the contract with the finance company, a life and employment risk insurance is also stipulated. In the case of “life risk”, the insurance company intervenes without claiming a right of recourse against the heirs.

The transfer of the fifth in history

The transfer of the fifth was conceived by the will of King Vittorio Emanuele II, dates back to the second half of 1800. The creation of the assignment of the fifth served as a privilege reserved for state employees, would thus have had the opportunity to obtain a loan at favorable conditions. For a long period, the assignment of the fifth was therefore granted only to state employees.

In 1950, with the law 180/50 and subsequently with the implementing decree n. 895 of the same year, the sale of the fifth was regulated in a more detailed way compared to what had been done about a century before. The single text included topics such as the disciplines on seizure, foreclosure, the assignment of the fifth salary, the salaries, and pensions of public administration employees and the regulations regarding the execution of these disciplines. For the following fifty years, the sale of the fifth will remain a preferential loan obtainable only by public and state employees and retirees.

In 2004 and with the 2005 financial law modifications were made to the 180/50 law. The sale of the fifth product was also extended to employees of private companies and the monopoly of the IPAP was eliminated, until then the only institution authorized to issue insurance coverage on the sale of the fifth for public and state employees. Lastly, the flexibility of the duration of the assignment of the fifth, which was then granted with a duration between 24 and 120 months, was favored, the minimum length of service was abolished to obtain the assignment of the fifth, rules regarding transparency in contracts were granted and the faculty was granted. pension institutions to stipulate agreements for the transfer of the fifth with lenders.

WHEN THE EXPENSES ARE TOO MANY FOR THE PENSION, WHAT CAN WE DO?

During retirement, besides some physical ailments, it is normal to have extra expenses, let’s think about the medical ones, and you always want to help your children or grandchildren. So the various family expenses certainly increase and add to the classic expenses related to taxes or contingencies. Every so often we think: “What if I went to live abroad?”, We know that many think it because you have said it very directly. The desire to go abroad stems from the fact that we know better conditions for retirees in other states, places where the cost of living is lower and the social situation is less stressed.

After a lifetime of sacrifice and work, all for your children and your family, you know very well the reality in which you live and you are constantly looking for serenity, the important things are spending time with your grandchildren, wanting to know that your children do not have to worry about anything at the financial level and naturally you do not want your life to be manipulated by stress. Stability is given not only by our approach to life but also by our financial situation. In fact, the economic problems we have or the stress that generates even a small problem of this type we want it to be absolutely resolved. Precisely at this juncture, we come into play at Leasecredi.

Assignment of the fifth: a loan tailored to retirees


The retired loan granted through the sale of the fifth is the ideal solution to get the amount necessary to finance their projects and daily needs, without the need for additional guarantees or special reasons, but above all, keeping their loved ones away from debt.

This financial instrument was introduced into the legislature’s order to allow this category to easily obtain a repayable loan in fairly broad and practically certain terms.

Indeed, thanks to the sale of the fifth, INPS and other pension institutions have the possibility to:

Apply for a loan up to 85 years (on expiry)
Get high amounts
Pay a fixed installment for the duration
Be guaranteed for life risk
Access also in the presence of financial problems (protests and reports in databases)
You can apply for loan even without going to the bank via Home – LeftBank!
One of the main features of this particular loan is to pay the monthly installments through direct deductions from the pension, which the Social Security Agency pays directly to the company providing the loan on a monthly basis.

Furthermore, the installment itself cannot exceed one-fifth of the net pension received per month, which is why it also determines the maximum amount that can be obtained.

In this regard, it should also be noted that the minimum required by law for the purpose of the request for the transfer of the fifth, is set at € 501.89 net under which it is not allowed to make the request for transfer of the fifth.

To know your transferable quota, simply request it from your pension institution or, better still, rely on a contracted agency that will request and obtain it in a very short time, in order to optimize the timing for the loan.

The retiree, therefore, just have to show two simple documents to quickly know what sum he can get:

Identity card and health card

Retirement bill and OBIS M (The affiliated agencies can help the client free of charge in obtaining the income documents) and that depends exclusively on the age and the transferable quota.

Assignment of the fifth: the insurance guarantee that protects the pensioner


The transfer of the fifth provides two insurance coverage, mandatory by law, which protects the client from the risk of death and risk of employment (only for employees).

In fact, at the time of the contract proposal, he is required to provide statements about the state of good health and other information that allows the activation of insurance coverage to compensate the residual credit.

Specifically, pensioners are guaranteed credit risk if they do not have the possibility to make payments until the natural extinction due to death.

In fact, the same insurance company will be responsible for paying the remaining debt, thereby exempting the heirs of the loan underwriter.

What’s better than to realize your dreams even in old age, continuing to live calm and without any concern for the future of your family?