This can be one of the main definitions for an investment that has been gaining more and more supporters: Private Pension. And knowing how to make a private pension is the first step.
More than a definition of private pension, we will try to answer the question “Why invest in Private Pension?”
How to make a private pension?
There are several whys. But there is no denying the importance of planning the next steps, even if they seem to be distant.
The Social Security Monthly monitors the lives of millions of Brazilians. However, having a separate financial reserve may be the way out to ensure the desired retirement. Thus maintaining the same standard of living during the period of active professional life.
And there’s more. Since Welfare plans allow automatic debits from the current account, it is also a way of looking after the future. This, especially for those who do not have the discipline to save money.
But how to make a Private Pension? Are you old enough to start contributing? Am I too old for this?
To demystify the topic, check out the key information to take into account at the right time to do and how to do a Private Pension.
+ How private pension works
What is the best age to start a private pension?
To get some good news early on, be aware that there is not a certain age to hire a Private Pension plan. It is possible to do this at 25 or 37 years, anyway, at any time.
However, age should be considered for the definition of the value that will be saved. For example, the future income of someone applying in the Pension Plan R $ 100, every month, from the age of 25, will be higher than the income of someone who also applies R $ 100 reais monthly from the age of 40 of life.
So the first lesson on how to make a private pension is: the sooner you start, the better!
Setting the desired value
Defining the value you want to get up front is a vital part of the process and depends on a few things. One is what each one plans for the future.
It is important to put on paper the amount you want to receive in the future (to maintain your standard of living, travel and etc.) and project how long you will receive that benefit.
“And how do I know what value I should save on a monthly basis by taking all this into account?” You will rely on the help of simulators to get the answer you are looking for. After all, there are many issues to be observed.
By doing the simulations it is possible to check the various Private Pension plans available to complement the retirement income.
Private Pension Options
Now that you’ve seen how to make a private pension, let’s go the options.
Private Pension options are increasingly on the rise for those who are far from retiring. And also for those who also look for a long-term investment alternative with fixed or variable income.
This is an investment that is worth more in the long term due to the tax regime, which varies according to the modality chosen. Two are found on the market:
- Free Benefit Generator Plan (PGBL)
- Life Free Benefit Generator (VGBL)
Another aspect that should be taken into account when considering how to make a private pension is the taxation system of Income Tax: progressive and regressive tables.
Taxation is basically linked to the time of application of resources. The longer the term or time of the plan, the lower the rate charged at the time of redemption or the receipt of income.
How to make a Private Pension Plan in practice?
After taking into account all of the above information, it is possible that many are interested in making a Pension Plan.
It all starts with the search for the financial institution. Several provide the product, but here it is worth researching to know the different returns that can be obtained.
The hirings can be made even online. But it is worth deepening the research so that the choice is made with great discretion.
The next choice refers to the type of private pension that you want to do. It is important to be aware of the profitability that can be obtained and the fees that can be charged – administration and loading.
The first is charged annually on the total value applied, justified by the process of managing the resources. The second is charged on the contributions made.
It is also important to evaluate the advantages and disadvantages that each option offers.
There are, for example, plans that allow portability for other banks. There are still those who offer the possibility to redeem all the money invested in one go or in monthly amounts, among other variables.
Contract my plan for the bank or a brokerage firm?
The conditions offered by banks and brokerage firms can decisively affect the income to be obtained. That’s why it’s critical to research – a lot!
But what should also be considered here is that a particular bank can only present the institution’s own pension plans. A brokerage firm will be able to offer several options, from different banks.
Future of the family
One thing became clear: the sooner you start investing in a Private Pension plan, the better. So, have you ever imagined doing that for your children?
After all, having this option, combined with Social Security, can be the guarantee of an even better future, with greater gains and, consequently, more security.
But like every investment, it is vital to have the information about your current life moment, economic scenario and your future projections, which you hope to get ahead of you. But this, it’s good to remember, starts today.