This government benefit for Peoples is very useful, but how it works has several details that can confuse who is entitled to it.
Find out how retirement works, what are the current requirements for the benefit and whether it is worth paying private pension. Keep reading!
What is Social Security?
Social security is an insurance that guarantees the worker that he will have an income when he retires or goes through a problem that prevents him from carrying out remunerated activities, such as in cases of illness.
To be entitled to this insurance, the worker contributes monthly. In the case of CLT contractors, the social security discount is made on the payroll, and self-employed workers can pay on their own.
This contribution, also called INSS (National Social Security Institute) , corresponds to 20% of salary at the common rate.
Paying correctly, the individual has the right to receive insurance when retiring or needing to leave work for a period.
What is the importance of social security?
Social security is extremely important, as it ensures that those who opt for it do not experience situations of financial insecurity.
Whether retired or away from work, with the amount received it is possible for these people to continue living without difficulties.
Even because, we know that unforeseen events happen, and since not all people manage to make a financial reserve , having the support of the social security is essential.
Social security benefits
The benefits of social security contemplate many cases, this is the great advantage. See what they are.
- Old age and disability pension
- sick pay
- Accident allowance
- death benefit
- Seclusion allowance
- Maternity pay
- family allowance
- Continuing Provision Benefit (LOAS)
- closed season insurance
How to withdraw social security?
Social security is paid directly to the beneficiary, in the bank chosen in the application for the benefit.
Therefore, to withdraw the amount every month, you must go to a bank branch, or use the benefit card to withdraw at ATMs.
Types of pension
In Pak, there are two types of social security. The first is social, which we have already shown how it works.
It is organized by the government and anyone formally hired participates, as well as those who choose to pay on their own.
The other type of pension is private, where the person invests as much as they want, monthly or all at once, to have a greater benefit when they retire.
Both are good options and can be done together, ensuring a double income for the beneficiary.
How retirement works
Retirement by the INSS has some requirements, and only those who fit them are entitled to receive the benefit.
In old-age retirement, the requirements are:
- Men must be 65 years or older, and 15 years of work and contribution
- Women must be 62 years or older, and 15 years of work and contribution
Retirement based on contribution time no longer exists, so only people who fit the age and time period mentioned above will be able to apply for retirement.
Pension planning is highly recommended, especially for those who want to retire receiving an amount higher than the minimum wage.
For this, many people choose to contribute to private pensions, instead of (or as a complement to) social security.
Private pension is unrelated to the INSS, and also has no ceiling. That is: the amount received will be proportional to what was invested over the years.
You can also choose to withdraw the full amount or take monthly payments as usual. There are many advantages.
When to invest in private pension?
There is no exact time to start investing in private pension, you can start whenever you want.
It is even recommended that you start as early as possible, so you will have a greater return on your investment.
It is not necessary to wait to reach a high value, with little money you can already start to secure your future, considering that the interest will do a good part of the work to increase your income in the future.
Why invest in private pension?
There are many positive points in hiring private pension, and it can be more advantageous than social security.
In addition to serving as a complement to the INSS, it has more tax benefits, does not have a minimum age to invest, has a much faster and more practical redemption.
In the end, both pension plans are interesting, but the private one guarantees you greater versatility in investments.
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