July 21, 2024

Tesouro Direto wants to launch pension bonds; See the advantages and disadvantages regarding provident funds

7 min read

investing in direct treasure And at the same time saving money for retirement, knowing how much will you get over a predetermined period of time in old age? This is the idea that the National Treasury is considering a new role for Social Security that will be part of a list public addresses, which should be released in 2022. The information was submitted by the new Minister of the National Treasury, Paolo Valle, to condition, confirmed TradeMap . Agency.

The idea is to simplify pension planning, defining a period of resource accumulation that will last between 30 and 40 years and during which the investor will not receive interest. After this period, he will have access to the stipulated monthly income at the time of application.

Individuals will report what income they want to have in retirement and when they intend to stop working, and they will know how many bonds from the new Treasury Direct app they will have to purchase to achieve that goal.

According to the sources heard by the report, the taxes on profits will be the same as those imposed on others Fixed Income Securitieswhose income tax rate ranges from 22.5% to 15% after a two-year period. In other words, this can be a more useful product than the most widely used regressive tax pension fund, which provides for a reduction in income tax payment from 35% to 10% after 10 years.

In these funds, a rate equal to the fixed income rate, 15%, is only reached after a much longer period of time, eight years.

To avoid this disparity in terms, which would tread on its toes in the pension fund industry, the new bonds leap into an aspect the Treasury has yet to determine: whether to allow early redemption, and under what terms.

The question is: If an individual decides to sell his investment during the accumulation period, what is the penalty? Will you only get what you invested or is it worth some bonus, because these bonds only pay interest to the investor after the accumulation period?

“This is one of the points under discussion, among many others,” a technician from the treasury who was familiar with the conversations indicated. “Do we allow withdrawals? If so, do we update by market capitalization or by the yield curve?.” Today, when an investor sells direct Treasury bonds before maturity, he receives the market value of the securities, which may be even lower than the investment made until right Now.

According to the source in the Treasury, the new product is not necessarily intended to attract investors through the return. “It’s not a comparison of returns, although they can go up or down, time will tell. It’s a matter of design,” he says. Simplicity with security and profitability.

Management fee x diversification

The absence of traditional management and deduction fees, which are the norm in pension funds, is one factor that can help attract investors to new direct Treasury bonds.

Brazilian economist Fabio Giambiagi is the author of a study calling for a research paper with these characteristics, published on the 16th of this month.

He argues that the title along these lines is a public policy path that would encourage social security planning in Brazil, and suggests that a 1% management fee could reduce the balance accrued in these funds by up to 20%. Who already exercise much more.

“Administrative Fee for EAPC Pension Plans [Entidades Abertas de Previdência Complementar]He noted that insurers average about 1.8% annually, with an average of 1.7% for the most conservative plans and 1.9% for plans that are stricter in terms of investment policy.

Currently, ultra-conservative fixed income pension funds account for more than 60% of the equity of these investments.

“A public pension bond along the lines of what is proposed here would have the advantage of including in a single instrument the stages of income accumulation and payment, combining these features in a way that is simple, easy to understand and at low cost to the citizen. From this design, citizens need to know how to answer only two questions: 1) how far they want to receive it in retirement; and 2) when he intends to retire,” he says in the study.

However, it should be noted that private pension plans allow for allocation into balanced funds, which invest in different asset classes, including stocks, and offer a more diversified portfolio to the investor, bringing a greater potential return than applying only in fixed income papers.

What to take into account

And what should you keep in mind when choosing how to pool resources for retirement? One of the main points is the tax system.

In the case of open-ended retirement funds, there are two different systems – descending and progressive – and it is up to the investor to choose one when contracting the plan. Therefore, it is important to consider how long you intend to invest in and how much you intend to give annually in order to understand which method will work best for you.

In the case of those who opt for regressive taxes, the IR ranges from 35% to 10%, and decreases as the application period increases. Therefore, the ideal option is not to recover resources in the short term. In this case, to get to 15% of the lowest rate an investor pays on Treasury bonds, they must stay for at least eight years in a pension fund.

For those who opt for a progressive income tax schedule, the income tax rate follows the same rules as payroll and increases according to the amount refunded at the time of withdrawal or withdrawal as income.

Thus, for those who elect to redeem the balance in full at the time of redemption, a 15% rate of income tax is deducted at source and the investor makes the adjustment on the following year’s income tax return.

If the beneficiary chooses to withdraw money from the plan as income, income tax will be deducted according to the monthly income, according to the table below.

Source: Federal Revenue
Contribution period income tax rate
up to two years 35%
2 to 4 years old 30%
4 to 6 years old 25%
6 to 8 years old 20%
From 8 to 10 years 15%
More than 10 years 10%

As you can see, the progressive schedule is indicated for those who have less credit to receive or have an investment horizon of less than 10 years, in order to pay a lower tax rate.

The advantage of provident funds is the ability to take advantage of tax benefits. Those who contract with a PGBL (Free Benefit Generation Plan) private pension plan can deduct contributions up to a limit of 12% of gross taxable income annually from the income tax base calculation.

In the case of PGBL, tax is payable only when the investment is recovered (in whole or in part) and is levied on the total amount accrued in the period.

In the case of the VGBL plan (or Vida Gerador de Benefício Livre), income tax is deducted only and, therefore, it is more convenient for those who are exempt from income tax or who request income tax through the simplified form.

Options are already on the market

Today, there are already plans in the private pension market that allow the investor to receive the accumulated amount as a payment in the form of recurring income. This payment can be made in the following ways:

Lifetime premiums: Payable exclusively to the subscriber until his death.

temporary income: The rent paid for a specified period ending at the end of the term or with the death of the subscriber. Here, the beneficiary sets a deadline for receiving payment.

Lifetime annual salary with guaranteed minimum: After the death of the joint, the income returns to the beneficiary / heir for a predetermined period. If the pregnant woman dies after the deadline, the income is not reversed.

Life annuity can be reversed to a specified beneficiary: After the death of the holder, a percentage of the income is paid to the named beneficiary until the end of his life.

Reversible life income of the spouse with continued minors: After the death of the beneficiary, a proportion of the income reverts to the spouse until the end of his life, when it passes to minor children up to the age of majority.

Both lifetime monthly income and temporary income are classified as actuarial income, as the entire amount is transferred to the insurance company, which undertakes to provide the monthly income as contracted.

The main difference between them is that in monthly lifetime pension income, the beneficiary is entitled to his income until the end of his life, even if he lives longer than estimated.

Although this choice of income method is mandatory, it can be modified up to two months before the date of departure, when the financial institution must contact the participant to confirm the income method he wants.

There is a possibility for the investor to get the money back before the end of the contribution period, but this is subject to the rules of a specific grace period for each plan.

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