Retiring with Quota 103 entails a heavier penalty from this year compared to 2023. The calculation of the annuity takes place only with the contributory system, even for the years worked and falling within the salary system. To this we must add the fact that leaving at 63 involves a lower conversion coefficient of the amount than at 67 for the old-age pension.
The amount of the pension with Quota 103 is in fact determined by the application of the transformation coefficient on all contributions paid.
While until the end of last year this parameter was used only for the contribution part of those who could claim 41 years of payments to retire early at 63 years of age. A combination of factors that decreases the amount of the pension by a lot.
Pension amount with Quota 103, how it is calculated
For the worker who is preparing to retire, the first rule to keep in mind is that the longer it takes to leave work, the greater the amount of the pension will be. However, the income also depends on another important factor. How many compulsory contributions have been paid into your pension fund during your working career. The higher the contribution amount, the higher the pension will be.
For those who have 41 years of contributions this year it is not convenient to retire with Quota 103 because a good part of these payments, about a third, will be recalculated as if they had been made after 1995. It is therefore lost in the revaluation and calculation system. Until 31 December 2023, in fact, the mixed pension calculation system applied for those who started working before 1996. That is, the annuity is quantified partly with the remuneration system for payments before 1996 (more advantageous) and partly with the contribution system for the coverage periods from 1996 onwards.
But from this year this is no longer possible if you opt for early retirement with Quota 103.
Compared to last year, given the same pension age and contributions paid, there is a difference which on average reaches 16-17% of the total. On a check of 1,500 euros per month it is around 250 euros. Not a little for sure.
Stay at work or delay leaving
So how can we avoid losing out? The answer is simple: delay access to your pension. But not by much, it’s a matter of waiting a little longer. With 42 years and 10 months of contributions for men and 41 and 10 months for women you can easily retire without incurring any penalties. Contribution threshold that can also be reached with voluntary contributions, not necessarily by going to work.
For men it means staying at work for another 22 months, but for women the distance that separates them from early retirement is only 10 months. A goal that can be achieved without any particular additional sacrifices. For those who are employed, there is also the possibility of obtaining the economic incentives (ex Maroni bonus) linked to the waiver of Quota 103.
Finally, it should be remembered that delaying the pension by 1-2 years compared to the 63 foreseen by Quota 103 will imply a higher allowance because it is calculated both on a higher contribution amount and on a higher chronological age. In fact, leaving at 64 is economically more advantageous than leaving at 63.
Summing up…
- Retiring with Quota 103 implies a loss on the check of up to 17%.
- What changes from this year and why it is better to still work after the age of 63.
- The advantage of renouncing early retirement with Quota 103.
