Private pension is a simple and low-risk investment for the investor. Basically, it is made up of monthly investments, with pre-fixed values, and which are more valued in the long term. After all, it is based on these periodic investments that profitability will gradually grow, making it a good option for retirement, for example.
For those who are looking for a long-term investment, with withdrawal facilities to change their plans, the private pension can be a great choice.
Unlike Direct Treasure, for example, this type of investment has been considered to add more convenience to the investor. Mainly, because you don't need much to open your pension.
So you want to know why you might consider this type of investment to reach your financial goals? In this post, we're going to talk about social security. Follow this reading, and get closer to new goals in your life!
What is and how does private pension work?
THE private pension is a simple investment and low risk for the investor. Basically, it is made up of monthly investments, with pre-fixed values, and which are more valued in the long term.
After all, it is based on these periodic investments that profitability will gradually grow, which is a good option for the retirement, for example.
But investors also resort to pension plans in other scenarios that may arise in the short, medium and long term in their lives, such as:
- civil servants and the CLT regime — or civil servants — can count on the welfare to supplement their respective public pension income;
- way to add a monthly income to future heirs;
- liberal professionals who do not contribute to the EHIC.
Simply put, social security has served to contribute as an income supplement for the future, but also as a very low risk investment.
What are private pension plans?
An interesting way to understand whether your favorite investment is worth it is from the costs associated with it.
In this case, social security is not one of the investor's main means due to some costs related to its maintenance, such as:
- loading rates (in and out);
- administration (usually charged by the financial institution you opted for in the plan).
On the other hand, they are investments that are easy to follow. The investor does not need to monitor anything: it is enough to have the monthly amount determined in advance for the bank to automatically announce the contribution.
But, in addition, you can choose between two different types of pensions – and that should be chosen according to your investor profile, goals and needs — and other important aspects we'll look at next!
PGBL or VGBL
Acronyms for Free Benefit Generating Plan and Free Benefit Generating Life, respectively, they have a lot in common, but as far as their differences are concerned, the main one is taxation.
For example: in PGBL, the income tax collected will come based on the total you will redeem — and with the possibility of having the contributions deducted directly from the income tax.
In VGBL, the Income Tax will only apply to the profitability you have earned over the period.
In addition, you must choose the taxation model for your investment. In social security, this occurs in the following ways:
- progressive, in which 15% of what was applied will be withheld at source (it can reach up to 27.5%);
- regressive, in which retention will rotate between 35 and 10%. That depends on how long you keep the money in — the longer, the less tax you'll pay.
Are you able to identify which points of the pension have the most to do with you?
Is it worth investing in pensions?
Although many people are among the Direct Treasury or direct pensionThere are many other types of investments that can be considered.
And the reason for the popularity of these first two is mainly due to the facilities to invest. But when we look at pensions coldly, we also find some interesting points that are worth considering to start with. investing BRL 100 or even less, according to your goals, such as:
- easy customization of your pension plan, which allows an interesting alternative in the medium or long term;
- it facilitates the composition of a stable income for the future (as in the cases mentioned above);
- portability flexibility, ensuring that investors can take their investment to another institution, if they prefer;
- a practical way to generate financial discipline for the investor — it could be the first contact you will have with the investment world.
However, as we have already mentioned, social security also accumulates some points of attention that make many people opt for others types of investments.
For example: the rates charged subsequently reduce the gains acquired over time. Furthermore, taxation can be a problem — especially considering that there are investments that are tax free.
Profitability, in itself, is also not one of the greatest attractions of pensions. Treasury Direct itself usually attracts more attention from investors who are making their first contributions.
With that, answer the question “it's worth investing in pensions” It is not so simple to answer: for those who already have financial stability and are thinking exclusively about comfort and income for the future, it might even be an interesting idea.
But the direct and indirect costs can make the investor demotivated when calculating how much he can acquire, in the long term — mainly, comparing with other options.
But, in general, social security is an interesting instrument to take the first steps in this universe. Even more, if you intend to diversify your investment portfolio in the future.
Do you want to tell us about your experience with social security? So, leave a comment below, and we'll expand on that discussion with your own stories on the subject!
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