You can retire without relying on the INSS and have a monthly income of R$5,000 for life. To simulate this monthly income, the UOL I listened to financial professionals to find out how much should be applied each month and how.
To obtain a monthly retirement income of R$ 5,000 through a supplementary retirement plan, age is one of the primary factors. This is because the earlier you start, the greater the balance that needs to be created.
in his simulation President of products from ooo smart XPWalter fireworks 65 years is considered as the retirement age, that is, the amount that the investor must invest to have a lifetime income of about R$ 5,000 per month from the age of 65.
The calculation took into account the age group of investors, the annual return of 8% and inflation In a period of 4%, precisely to maintain purchasing power in the future.
To retire at the age of 65
Therefore, the options for the required monthly contribution amount will be:
- Starting from the age of 25 – R$ 1,137.71
- From the age of 30 – R$ 1,480.27
- Starting at the age of 35 – R$ 1,941.00
- From the age of 40 – R$ 2589.00
As you can see, the later you start, the higher the monthly contribution. Therefore, if you want to retire even earlier, it is necessary to accumulate more assets – since the benefit time is longer – and the monthly contribution should be more expressive.
What does it mean to have a monthly income for life?
The value accumulated at the end of the contracts should continue to achieve 4% above inflation.
A person shall withdraw only what is produced above the total sum inflation.
Thus, she maintains the return on investment, without losing out due to inflation, and guarantees a monthly income equivalent to R$5,000 for the rest of her life.
Don’t forget about inflation
The amount of the monthly contribution does not need to change throughout the period, since the real profitability taken into account in this calculation, i.e. higher than inflation, was 4%.
As much as the above simulation takes into account the rate of inflation, it’s common to forget that when planning your retirement without relying on the INSS.
If inflation in one year is about 5%, the money must have a nominal return of at least 9% per year.
The goal is to get the equivalent of R$5,000 in the future. But, over the decades, those 5,000 R$ will lose purchasing power. So, when it comes time to retire, people will be able to withdraw the equivalent of R$5,000 today, which would be a much higher amount.
Where to invest?
Regarding the portfolio, the most important thing is to adjust the risk level according to the profile of the investor, since each one has a degree of risk tolerance, which makes a big difference in the allocation of capital.
The important thing is that the annual return is at least 4% higher than the annual inflation rate.
There is no magic portfolio, some will accept 30% in equities, 20% in manufacturing and 50% in treasury direct; Others will find it too aggressive or even too reserved. The important thing is fine tuning.
Walter Voguelin, Chief Product Officer, InvestSmart XP
How does the private pension work?
By choosing to apply this money to a private pension, it is possible to choose to have a lifetime income.
Temporary monthly income, monthly income for a certain period, and reversible income for beneficiaries of private pension plans are also possible, says Daniel. train carriageWarren Pensions and Insurance Specialist.
In addition, the investor can choose to implement redemptions, retain the invested balance, or implement the possibility of transferring to other plans.
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