It pays
If the redeemed years let you meet a requirement you could not otherwise reach, or bring your retirement date forward noticeably.
CAF services · Pensions
Redeeming university years for your pension
Turning your university years into paid contributions: this is the riscatto della laurea (redemption of degree years). The cost varies enormously depending on the period and the system that applies, and whether it pays off is not measured in euros spent but in months of earlier retirement and a higher pension.
01 · How it works
What you can redeem
Redemption lets the years of your official course length count towards your pension, covered by a payment you make yourself. It is not a purchase of any years you like: they are the actual periods of the course, without the extra years taken beyond it.
- You redeem the years of the official course length: years taken beyond it cannot be redeemed.
- The qualification must have been obtained: studies abandoned before graduating cannot be redeemed.
- You can redeem a degree, a university diploma, a specialisation or a doctorate not already covered by contributions.
- Periods already covered by compulsory contributions cannot be redeemed.
- Redemption can be partial: you can redeem only some of the years.
- You can apply even if you have never worked, under specific rules.
Redemption counts both for your entitlement to a pension and for its amount. These are two separate effects: adding years may bring forward the date you can retire, or it may only increase the monthly pension. Whether it pays off depends on which of the two you actually need.
02 · The bill
How the cost is worked out
The cost depends on the calculation system that applies to the period redeemed, and the differences are very wide.
- The actuarial reserve method produces very high costs, and they rise as retirement gets closer.
- The percentage method is more predictable and is linked to your salary over the last twelve months.
- The reduced-cost redemption, where it applies, has a much lower flat-rate cost per year.
- However, the reduced-cost redemption credits a contribution pot equal to what you paid in: the effect on the pension is proportionately smaller.
- Payment can be spread over a large number of monthly instalments, with no interest.
| Period to redeem | Calculation method |
|---|---|
| Periods falling under the earnings-related system | Actuarial reserve: a high cost, rising with age and salary |
| Periods falling under the contribution-based system | A percentage, equal to the contribution rate, of the salary for the last year |
| Reduced-cost redemption | A fixed flat-rate cost for each year, regardless of income |
| People who have never worked | Specific rules, with a dedicated calculation base |
03 · The deduction
How much you get back through tax
This is the factor that brings down the real cost, and it is often not calculated correctly.
If you pay it yourself
The cost is fully deductible from your total income: the saving depends on your marginal tax rate.
If a family member pays it
Someone who pays for a family member who is their tax dependant can deduct it from income, or take it as a tax credit, under the applicable rules.
If the person has no income
A parent who redeems the years for a child with no income is entitled to a deduction from tax.
Paying in instalments
The deduction follows the cash basis: you deduct what you actually paid in each year.
The net cost is much lower
And that is the figure to compare.
- The deduction reduces taxable income, not the tax itself
- With a high marginal rate the saving is substantial
- Spreading payment over several years also spreads the tax benefit
- The comparison should be made on the net cost, not the gross cost
04 · The assessment
When redeeming your university years really pays
There is no answer that fits everyone: it depends on your contribution record, your age and the goal you are pursuing.
It pays
If your marginal tax rate is high: the deduction cuts the real cost substantially.
It pays less
If you already have a full contribution record and the added years move the date very little.
Needs working out
If you are still young: the cost under the percentage method is low, but the horizon is long and the rules may change.
Watch out
The reduced-cost redemption is cheap but credits a smaller contribution pot: the effect on the final pension is smaller.
Check first
Your overall contribution record. See the INPS contribution statement.
05 · How it is done
How to apply
The procedure is online and includes an important step: you can withdraw after seeing the cost.
- You apply to INPS (the Italian social security institute) with SPID or CIE, or through a CAF (authorised tax assistance centre) or a patronato (welfare advice office) with a proxy.
- You state the course and the years to redeem, and the exact period.
- INPS issues a decision setting out the cost.
- You can accept or withdraw after seeing the amount: the application is not binding.
- You can pay in a single sum or in many monthly instalments with no interest.
- The periods are credited progressively as you pay, or all at once when the balance is settled.
Because you can withdraw after seeing the quote, applying costs nothing: it is worth doing just to learn the exact amount, which no simulation reproduces precisely.
06 · Other routes
Alternatives to redemption
If the goal is to fill gaps in your contributions, redemption is not the only tool.
- Ricongiunzione (merging) brings together periods paid into different schemes, but it comes at a cost.
- Cumulo (combining) lets you use periods in different schemes at no cost.
- Totalizzazione (aggregation) has its own calculation rules, sometimes more favourable.
- Voluntary contributions, once authorised, cover future periods without work.
- Supplementary pension schemes do not add years but build an annuity, with their own tax deduction.
- Recovering contributions your employer failed to pay costs nothing and is worth as much as a redemption: it is the first thing to check.
Before spending money on redemption, it is always worth checking your contribution statement: recovering periods your employer did not pay for is free and has the same effect. Of all the checks you can make, it is the one that costs least for what it can give back.
Frequently asked
The questions that keep coming up
Can I also redeem the extra years I took beyond the course length?
No. Only the years of the official course length set by the university system can be redeemed: if you graduated in eight years from a five-year course, you can redeem five.
The qualification must also have been obtained: studies abandoned without a degree give no right to redemption.
Exactly how much does it cost?
It depends on the calculation system that applies to the period. For periods under the contribution-based system, the rate is applied to your salary for the last year; for those under the earnings-related system, the actuarial reserve is used, which costs much more.
The most reliable way to find out is to apply: INPS issues a decision with the exact amount, and you can withdraw after seeing it. The application is not binding.
Is the reduced-cost redemption always worthwhile?
It costs much less, but it credits a contribution pot equal to what you paid in: the effect on the amount of the pension is proportionately smaller than with ordinary redemption.
It makes sense if your goal is to reach a length-of-service requirement; it makes less sense if your goal is a higher pension. That is the comparison to make before choosing.
My son does not work. Can I redeem the years for him?
Yes. Redemption for a family member who is your tax dependant is possible, and the person who pays can deduct it from income or take it as a tax credit under the applicable rules.
For people not yet enrolled in any pension scheme there is a dedicated calculation method, which makes the cost lower than for someone who already has a contribution record.
Let's talk
The right question is not what it costs, but what you need it for
With your contribution statement in front of us, we work out whether redemption brings your pension forward or just adds years you do not need.