Transfer of the fifth of the pension: what changes with the new INPS convention (cross-border guide)

Context

In Switzerland, the new INPS agreement for the transfer of the fifth of the pension has been updated until 30 April 2029. This convention has several new features, including:

1. Update of telematic functions: For the management of early closures or remodulations of the amortization plan, the affiliated intermediaries must only use the dedicated telematic functions.

2. New charge: The charge due to the affiliated intermediaries for the extraction of the pension accrual has been updated to 2.03 euros for each sale.

3. Method of application: INPS pensioners can apply for an extinguishable loan with the transfer of one-fifth of the pension, with a maximum duration of ten years.

4. Obligation of insurance coverage: The obligation to take out insurance coverage against the risk of premature death of the pensioner remains in force.

For more information and a concrete example, please refer to the following real data:

• In Ticino, the average gross interest rate for a sale of one-fifth of the pension was set at 3.50% per year compound, gross.
• In Zug, the average gross rate was set at 3.75% compound annual, gross.
• The minimum safeguard of pension treatment after a transfer of one-fifth of the pension is CHF 750 per month.

For retirees residing in Grisons or URIs, this data may vary.

For easy and compliant management, here's a checklist

Operational details

The management of early closures or remodulations of the amortization plan in Switzerland at the national level must be carried out exclusively through the dedicated telematic functions. The Institute will not consider communications transmitted in other ways.

The new INPS agreement on the transfer of one-fifth of the pension introduces several changes compared to the previous one. Here is a concrete example: in Ticino, the agreement provides that one-fifth of the pension is sold for a maximum of 5% per year, with a maximum amount of 400 francs per month.

The previous agreement provided for a maximum quota of 3% per year, with a maximum amount of 300 francs per month. The change introduces a higher potential gain for retirees, incentivizing them to carefully evaluate the convention that best suits their needs.

Once the agreement has been chosen, the pensioner will have to follow a detailed operational checklist for the management of the transfer of the fifth of the pension. For example, you will need to submit the written application with the relevant documentation within the month following the month in which you reached retirement age, according to INPS rules.

The transfer of the fifth of the pension has advantages and disadvantages. Benefits include immediate liquidity (compared to the amount remaining at the time of retirement) and diversification of financial assets. Disadvantages include impact on future liquidity and potential loss of

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

In Switzerland, the assignment of the fifth of the pension (VVP) is an extinguishable loan guaranteed by the pension. With the new INPS agreement, applicants will have more opportunities and flexibility. To access this loan, the pensioner must submit the application to the affiliated intermediary, who will guarantee insurance coverage against the risk of premature death. The maximum duration of the loan is set at ten years and the applicant will be able to choose the fifth percentage of the net pension salary.

The exact amount will depend on cantonal regulations and the INPS convention. For example, in Ticino, the minimum monthly installment for a loan of one-fifth of the pension is 252 francs, while in Graubünden it is 325 francs.

For a correct assessment, it is important to consult a financial expert, who will be able to consider the individual situation and future prospects. For example, in the event of job loss or chronic illness, the risk of not being able to repay the loan could increase. In this case, additional coverage or a modification of the agreement may be required.

An operational checklist for submitting a loan application is as follows:

1. Submit the request to the affiliated intermediary. 2. Determine the duration of the loan and the amount of the loan. 3. Sign the agreement and pay the first installment. 4. Continue pre-mortem risk insurance.

It is important to note that

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.

Source: fiscoetasse.com