The recent Pension Reform brought some improvements to the quality of life of retirees. One of these benefits was associated with the amount people could receive in their retirement benefits. The previous maximum was around 115%, but this has been increased to 132%. If you’re thinking about retiring and want to know how to do it, check out these tips. You can enjoy the best retirement with money in your pocket!

The new rule guarantees that women can retire at age 62 and men at age 65, with a minimum of 15 years of contributions to the INSS. If you are contributing your fair share, you will be entitled to 60%. Government retirement plans can be confusing, but it’s not hard to imagine how long it would take for a person in the program to break even. The interesting thing is that, although it’s not always easy, the chance of getting there is very good.

If you are older, you may be thinking about how to secure a larger retirement in your old age. In this article, we will cover all the important aspects of pre-retirement planning.

Getting to know retirement

Have you ever heard that the retirement age was created in Germany as early as 1889? To ensure that workers have a comfortable life even when they are old and retired, they receive a pension every month. The first retirement law in Brazil appeared in 1923. It wasn’t a hundred years ago, look how recent it is. In any case, the first pension only covered railway workers. Only later did other categories also benefit.

Initially, retirement provided people with leisure time to enjoy. As time passed and legislation changed, working hours for older people began to become more common. Increasing the retirement eligibility limit from 60 to 65 has been available for some time. With a longer contribution time, retirees can access benefits sooner!

Retirement with 100% of average salary

Whether you’re retiring, taking time off to start your own business, or going back to school, these benefits are great for women. By making an annual contribution of 75% of the Earned Income Credit, a woman can retire easily. In the case of men, the two percentage points per year of contribution begin after 20 years of service. This means it takes around 40 years to reach 100% of the average salary.

The benefits of working and contributing to a website increase over time. In the former case, you get a lower level of benefits, while in the latter case, you increase appreciation. You also save more hours on content writing.

Find out more about the average salary

Salaries for specialists and semi-professionals vary greatly, but the average salary tries to calculate the average income for everyone. The number of months worked is not very important, but you can use it to get an idea of how much your income has grown. That’s why it’s important not to focus so much on the average salary and instead look at your own position.

Workers who have contributed to the National Social Security System for 36 years are those who are qualified and are entitled to receive 102% of the average salary, from 1994 to today. When you retire, you will be entitled to more than 100% of your salary. Just spend 42 years working at the same company and it will be worth 104% of your salary during that period.

How to retire with 100%?

The maximum Social Security benefits allowed under the old system were drastically reduced after the reform to save the government money. For example, previously the lowest 20% of wages were considered “unused” when calculating what a person could earn. In the current system, this number has been reduced to 0%.

Employers will now also be responsible for providing benefits. This will likely have a dramatic effect on the average salary! It may be difficult to do the calculations, but it is not impossible. Consider adding up all the years of contributions in which you received a lower salary and then subtracting those with a higher salary.

Retirement Values

The minimum wage in Brazil is R$1,100 and cannot be lower than that. This means that the individual has a pension of at least this amount. They cannot exceed the INSS ceiling, which is R$6,101. The Social Security Factor can reduce the average for those who retire early and increase it for those who have contributed for a longer time. It is important to remember that this is not a perfect solution as not everyone will achieve the highest rate due to state-specific considerations.

The Social Security Factor (FSS) was removed from the calculation of retirement rates in the Reform. However, it is not yet known what situations may exist. To ensure that you receive all available information, your attorney should seek information from the agency.

Did you like this article?

Here are five great reasons why you should share our article! It might be interesting, informative, or fun for you, or maybe it’s something you’d like to learn more about.