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Best private pension plan: knowing how to make the right choice is essential to avoid losing out.
Planning for the future is important to ensure a retirement calm. Many people are already realizing this and have started investing right away.
Some people are even switching from social security to private pensions. If you are interested, you need to understand the subject very well before investing your money.
Never, under any circumstances, invest your money in something you don't know anything about.
To make your life easier, in today's article you will discover What is the best private pension plan? and how to choose the best one for your investor profile.
Therefore, be sure to read until the end to learn a little more about the subject.
See our index below:
- What is private pension?
- How does private pension work?
- What is the best private pension plan?
- Understanding the PGBL;
- Understanding the VGBL;
- Progressive Table.
- Regressive Table.
- Conclusion.
What is private pension?
Basically, it is an investment model that allows the individual to build up assets during their active life, but which will be used in their old age.
The main focus of this investment model is retirement.
In other words, you invest your money from your working life until you retire, and what you invest will serve as a supplement to your social security pension.
There are already many people who are replacing social security retirement with private pension plans. However, it is important to evaluate the risks, pros and cons before making this decision.
Despite being focused on retirement, this investment can be used for different purposes as well.
For example, you can invest money to pay for your newborn child's college tuition.
In fact, many people do this thinking about the advantages of the tax benefits that private pension plans provide.
How does it work?
The money you invest in private pension plans is invested in funds; these plans are normally set up for this very purpose.
After a certain period of contribution, you can receive the amount in the form of a pension, redeeming the total or partial balance.
Private pension plans are divided into two main categories: PGBL and VGBL.
To understand better, see below What is the best private pension plan?
What is the best private pension plan?
To know what is the best private pension plan It is important to understand which alternative best fits you.
After all, what are the main characteristics of PGBL and VGBL?
Understanding the PGBL
THE Free Benefit Generating Plan It is more suitable for people who complete their Income Tax return.
This is because it is possible to deduct up to 12% from the annual gross income, this being one of the main characteristics and advantages of plans in this category.
For example, if your annual gross income is R$100 thousand, you can deduct R$121 thousand, that is, R$12 thousand.
Simply inform this amount in your Income Tax return so that it can be deducted from the calculation basis. Therefore, IR will only be charged on the remaining amount, in this case, R$$88 thousand.
It is worth noting that, even so, when you redeem your investment you will pay tax on the total value of the investment plus interest.
Understanding the VGBL plan
THE Free Benefit Generator Life It is the recommended plan for those who make a simplified declaration or are exempt, normally, it is ideal for people with a low income.
In this option, the tax is only charged upon redemption on the investment income.
There are two ways of collecting Income Tax and you also need to understand what they are in order to choose the one best private pension plan.
Charges are made according to the progressive or regressive table. Continue reading and find out more.
Progressive Table
The higher your annual gross income, the higher the tax you will pay. In addition, when you withdraw the funds, 15% of tax will be deducted at source.
However, when doing the annual income tax return, be sure to inform this amount, as depending on your annual income it can be deducted or refunded.
See the table:
| Gross annual income | Aliquot | |
| Of | 0 to R$ 22,847.76 | Free |
| Of | R$ 22,847.77 to R$ 33,919.80 | 7,50% |
| Of | R$ 33,919.81 to R$ 45,012.60 | 15% |
| Of | R$ 45,012.61 to R$55,976.16 | 22,50% |
| Of | Above: R$55,976.17 | 27,50% |
Regressive Table
In this table, the longer the investment term, the lower the tax rate to be charged at the time of redemption.
| Term | Aliquot | |
| Of | 0 to 2 years | 35% |
| Of | 2 years to 4 years | 30% |
| Of | 4 to 6 years old | 25% |
| Of | 6 to 8 years old | 20% |
| Of | 8 to 10 years | 15% |
| over 10 years | 10% |
This table is recommended for those who have long-term goals. Now, if you have short or medium-term goals, best private pension plan is the one taxed in the Progressive Table.
Other than that, when choosing a private pension plan it is important to pay attention to the fees charged, the main ones being:
- Administration fee;
- Loading;
- Exit fee;
- Performance fee.
It is important to evaluate carefully to choose a pension plan that is advantageous. Nowadays, it is possible to find administrators that do not charge most of these fees, for example, Harvest.
Conclusion
To choose the best private pension plan You need to have good planning and compare which option is most advantageous for your goals.
Therefore, before hiring, it is important to study the subject well, apart from that, the help of a professional who understands the subject can be very useful.
Over time, as you get to know the market, you will be able to walk on your own two feet, but initially, the ideal is to seek help.
Recommended reading: know what CDC is and how it works.
