What is Private Pension? Why hire?
It is not in the plans of anyone to go through financial difficulties at the best age.
For this, we contributed part of our salaries with the Public Pensions. Thus, we can receive retirement when we get old and have security in times of unemployment and illness. However, this amount is limited by a ceiling, as well as being subject to changes in the Legislation.
Private Pension is different: with it, you join as much as you prefer in the term that you choose, to receive back whenever you want. For example, you can join every month $ 100 for 30 years and receive when you retire.
The Private Pension Plan is an alternative and a complement for those who do not want to rely solely on the public administration of pension funds. Like the insurance market, Private Pension is supervised by Susep (Superintendency of Private Insurance) in Brazil.
Advantages of Private Pension
Private Pension helps you to have a better life in the future by investing your money to redeem it later when you need it. In addition, the Private Pension Plan also helps you pay less tax.
With PGBL (Free Benefits Generator Plan) you can invest up to 12% of your gross annual income and have this amount deducted from your income tax. This offers a great advantage to those who have higher incomes and who end up paying more in this tax.
However, in return, the tax charged at the time of redemption is in relation to the total amount redeemed. That is, if you have 500 thousand reais at the end of the plan, being R $ 400 thousand invested and 100 thousand of income, you will be charged in the total amount.
This is different in VGBL (Free Benefit Generator Life) mode. Although it does not offer the tax rebate, the tax collected at the time of the redemption is only on top of what your investment yielded. That is, in the example above, you would pay tax only of the 100 thousand reais of income.
In addition, you can choose in which mode you will be charged: the progressive table and the regressive table. They offer different advantages, varying in each case. See in this report of the newspaper O Globo how to choose them.
Private Pension or Life Insurance?
One question that may arise for those who want to guarantee a more peaceful future for themselves and their family is this: Should I opt for a Life Insurance or a Private Pension Plan?
The answer is: it depends, since they are products with different purposes.
While Private Pension is a long-term investment, in which you put money together for a long time to secure income in the future, Life Insurance is a financial protection for your family if something happens to you.
In Life Insurance, there is no need to collect the money for a long time, and your family only receives the indemnity if any risk covered in the policy materializes.