Closed supplementary retirement
You know what it is closed supplementary retirement or closed supplementary pension?
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If you don't know, you're certainly not alone.
Many people are unfamiliar with this term or have many questions about what this retirement model is and how it works.
Therefore, we decided to clearly explain the following questions through this text:
- What is closed supplementary retirement;
- What is it for;
- Advantages;
- Pension plan models;
- When receiving;
- Conclusion.
What is closed supplementary retirement?
In Brazil, there are two retirement models: social and private. Social retirement is the most familiar, administered by the INSS (National Institute of Social Security).
It has a specific ceiling and is subject to political changes beyond the taxpayer's control.
Furthermore, it has several rules, and you must comply with them to be a beneficiary.
Now, the private supplementary retirement There are two variations: the closed one, which we are talking about today, and the open one, which you can check out in another article of ours.
Regarding the closed supplementary pension, the person can choose how much and for how long they want to contribute.
This way, it is possible to correctly plan your expenses in your later years and have control over everything.
This pension model is given this name because it is exclusive to employees of a company, entities or specific groups of professionals.
Furthermore, it is not administered by the INSS but by pension plan administrators.
In the case of sponsored plans, the company contributes to the worker, but this is not a rule.
To do this, the company must offer the benefit as a sponsor.
Plan values are invested by administrators in fixed or variable income. Although they are non-profit, administrators charge a fee for managing these plans.
The percentage is 0.5% of the total annual contributions, normally, the amounts are to pay employee salaries and the cost of rented property, for example.
In the long term, you will receive the amount as per the plan. supplementary retirement closed hired.
What is the purpose of closed supplementary retirement?
The purpose of the closed supplementary retirement is to assist with INSS retirement.
Let's say you've done your math and planned for the future and realized that you won't be able to live well on traditional retirement alone.
In other words, you won't be able to maintain your living expenses and will face difficulties, so if you have a supplementary pension you can avoid future problems.
In Brazil, it is very common to see retired people doing odd jobs to earn extra income.
This is, to say the least, sad and frustrating. A person who has worked for so many years, and when it's time to rest, can't, because they wouldn't be able to support themselves financially.
Unfortunately, the retirement benefit is not enough, even at a time when expenses are increasing, for example, with medicine and consultations.
Therefore, efforts and measures to avoid problems must come from ourselves.
Therefore, it is very important to invest in a long-term supplementary retirement plan, only then will you be able to enjoy the last years of your life in peace and tranquility.
Advantages
Among the many advantages that this investment model guarantees for the investor or participant, we have separated this topic to highlight some of them.
Firstly, we will highlight the deduction in the calculation of income tax, that is, for those who declare in the full model, with a limit of 12% of gross income.
Other than that, the rates of closed supplementary retirement are also smaller compared to other models in the same category.
This is because they are maintained by non-profit institutions, as already mentioned.
Furthermore, it is worth noting that the profitability of this investment model is slightly higher than the CDI rate, depending on the administrator.
Each administrator or bank where you can purchase a pension plan also has its own exclusive benefits.
However, we can conclude that this measure serves to help you plan your future and ensure that it is financially more peaceful and secure.
Imagine retiring and no longer having to work; traveling and seeing new places; always keeping up with appointments; being able to hire professionals if needed.
Certainly, it is the least we deserve when we spend years working and contributing, however, unfortunately, it is not the future for many.
Therefore, compare the advantages and consider this investment model.
What plan models are available to beneficiaries?
Pension funds, as this investment model is also known, have three plan options: Defined Benefit, Defined Contribution, and Variable Contribution.
BD: the beneficiary already knows what the value of his/her lifetime income benefit will be when he/she retires.
CD: in this option, the contribution amount during the working period is defined at the time of entry into the closed supplementary retirement.
CV: The last option is a mixed model. This is because it offers the possibility of payment as a lifetime income like a DB, in retirement, and similar to a CD, during the reserve accumulation phase.
Of course, the administrator will explain everything clearly before you make your choice.
When will I receive the gradual payment of pension reserves?
Payment only begins when the person retires, is fired, or chooses to leave the sponsoring company or plan.
The accumulated values in the closed supplementary retirement are paid monthly, just like in social retirement.
Each plan has its own rules; in some cases, it is possible to withdraw a percentage of the amount and the remainder is paid monthly.
Conclusion
If you want to have a more peaceful retirement and enjoy all the benefits that old age offers, you need to plan.
Therefore, the closed supplementary retirement is a great option.
So, if you are part of a group or company that offers this benefit, be sure to learn all about it and start being a part of it too.
To stay even more informed, read our article: What is Private Pension and how does it work?
