How to calculate private pension?
Do you know how to calculate private pension? According to the Brazilian Institute of Geography and Statistics (IBGE), Brazil now has more than 22 million autonomous workers.
Those who exploit their enterprises alone or with partners are considered autonomous. Formerly known as ‘self-employed’ professionals. If you work that way, do you have a habit of making payments that will guarantee you stability in old age?
It is common for self-employed professionals not to make monthly payments to the National Institute of Social Security, INSS, known as social security. Therefore, paying a private pension becomes the possibility of having a fixed income after retirement.
What is private pension?
Private pensions work as long-term savings. For this form of investment, which will allow you to receive your redemption monthly, you will apply your money in a Free Benefit Generator (PGBL) or Free Benefit Generator (VGBL) Life Plan .
In both plans you will have to accumulate the money in your account, making periodic deposits that will allow you to accumulate this money. At the end of this, or after that, you enter the receiving phase, when you begin to extract a monthly income from that result of years of investment. Yes, it takes years. Here’s how the calculation for the results of this investment is made:
For example, a 22-year-old wants to retire at age 52, 30 years later. With this intention makes a unique investment of R $ 30 thousand. If you withdraw the money with a single serve at age 52, she will receive:
- Gross amount: R $ 285,632.61
- Net amount with progressive taxation: R $ 219,749.94
- Net value with regressive taxation: R $ 258,953.95.
But if that person decides that they want to receive this money on a monthly basis, say for a period of 20 years, they will receive about $ 1,300 a month.
How to calculate private pension based on age
There is no minimum age to make a private pension plan. It is important to remember only the relationship between amount of payment, and time of contribution to the investment plan.
If you want to retire at age 60 and start paying at 50, that is 10 years earlier, you will have to make a monthly contribution that is proportionally higher than an 18 year old with the same intention. He is in favor of time, because he will have 42 years of contribution.
A similar logic applies to private pension redemption: if you choose to withdraw the amount applied before the end of the contract period, you will have to pay higher taxes and fees.
The Pension Plans are regulated by SUSEP – Superintendência de Seguros Privados. So your plans look a lot like insurance. In the event of death or disability, private pension – or the money accumulated in your investment, goes ahead as an inheritance.
Before investing in Welfare Plans do a good research on the institutions you will be looking for, the administration fees and the return on your investment. To know more about the operation of private pension, how to inform about which companies are authorized to offer this product in Brazil, consult the SUSEP website.
Now that you’ve learned how to calculate private pension, know what’s best: private pension or life insurance.