Buying back work seniority is getting more expensive: what seniors need to know about the new rules

The Casa Națională de Pensii Publice (National Public Pension House) is issuing an important warning for Romanians approaching retirement age: the rules governing the completion of contribution periods through the purchase of work seniority are set to undergo significant changes. This procedure, used by thousands of people each year, will become considerably more expensive from July 2026.

The current system allows contribution periods to be topped up through monthly payments calculated on the basis of the gross minimum wage of 1,013 RON. The cost of one year of seniority therefore amounts to approximately 12,150 RON, and legislation permits the purchase of a maximum of six years of contributions. This option is aimed primarily at people who have not completed the minimum 15-year contribution period required to qualify for a pension.

The tariff changes coming in July 2026 will have a direct impact on household budgets. Costs will rise automatically in line with increases to the gross minimum wage, meaning Romanians have only a few months left in which to take advantage of current rates. This change comes at a time when many families are already facing financial hardship and must plan carefully any investment in topping up their contribution record.

Important limitations on the use of purchased seniority

One crucial point that older people need to understand is that purchased seniority cannot be used to qualify for early retirement. It is taken into account exclusively for a pension drawn at the standard retirement age, which means that those hoping to retire earlier will not be able to make use of these purchased years. This limitation may significantly influence the decision to invest in topping up one's contribution period.

Official statistics show that between 6,000 and 7,000 Romanians use this option each year, with the majority opting for short periods averaging two years. This trend reflects the urgent need felt by many people to reach the minimum 15-year contribution threshold and gain access to the public pension system, rather than remaining dependent on social assistance.

Financial impact on vulnerable families

The financial difference between social assistance and the minimum pension is substantial and can make the difference between mere survival and a decent standard of living. A person with only 13 years of contributions would receive social assistance of approximately 400 RON per month, whereas topping up their record to 15 years would give them access to the minimum pension of over 1,200 RON per month. This difference of around 800 RON a month could cover basic expenses such as medication, utilities, or food.

For lower-income families, an outlay of approximately 24,000 RON for two years of seniority may appear prohibitive, yet the long-term calculation may demonstrate the viability of such a decision. In a scenario where a person draws their pension for 15 years, the 800 RON monthly difference would amount to approximately 144,000 RON more than they would have received in social assistance.

Guidance for making an informed decision

The Pension House stresses the importance of careful analysis before deciding to purchase seniority. The calculation must take into account total costs, the estimated period over which the pension will be drawn, the individual's state of health, and any available financial alternatives. It is also essential to factor in inflation and any potential future legislative changes that could affect the pension system.

For older people in this situation, consulting a specialist in pension law or a financial adviser may be beneficial. Such professionals can offer a personalised perspective on individual financial circumstances and help to properly assess the advantages and disadvantages of purchasing work seniority in light of the new legislative changes that are due to come into force.