Retirement: Who Benefits from Buying Back Fictional Years?

Buying back fictional years can lead to earlier retirement, but it comes at a significant cost (20% of salary). The cost depends on the employee's salary and daily wage at the time of deciding to buy back.

Experts advise insured individuals not to rush to pay for buying back fictional years unless they are very close to applying for retirement. From April 1, 2025, the cost of buying back fictional years will increase by 10 euros for those retiring based on minimum wages.

Buying Back Fictional Years: What Applies:

1. For employees and self-employed individuals, the monthly cost of buying back before 13-5-2016 was 167.85 euros for children, studies, and insurance gaps.
2. After Law 4387/2016, the monthly buyback cost for employees is 20% of the earnings of the last month of full employment.
3. For self-employed individuals, the monthly cost equals the main insurance contribution of the selected category.
4. In case of a lump sum payment, the discount is 2% for each recognized year.
5. For public sector employees who applied until 31-12-2016, the buyback cost for each month is 6.67% of the basic salary of October 2011, plus 140.80 euros.

By buying back, insured individuals can reduce the retirement age limit by up to 7 years in the private sector. In the public sector, the fictional time that can be bought back reaches up to 12 years.