I am happy. I will be fully happy, perhaps, if I wisely reach 60. Anyway, I still have a lot of life ahead of me.”
“Old age is a state of rest and freedom with regard to the senses. When the violence of the passions is relaxed and their ardor subsides, we are freed from a multitude of furious tyrants.”
Everyone knows that population aging is a reality both globally and nationally. With regard to retirement, retirement planning for this stage of life is one of those responsible for enabling healthy aging.
This population aging has been identified as one of the four megatrends that will bring a new configuration to the world stage in the next 15 years. This process has had consequences for several spheres, including the social security system; one of the biggest challenges of aging is in relation to social security and its sustainability.
Forecasts indicated that adjustments were needed in the United State pension system, due to factors such as the existence of the pension deficit, the weight of social security in public accounts and the United State demographic projection. Periodically these adjustments have been made.
In this sense, it becomes even more urgent to reflect both on keeping people in the job market and on saving for retirement, since this can become a long phase of life and one of the most important transitions in the transition from adult life to old age.
Among the s and resources necessary for a healthy retirement, the retirement aspect is an important pillar to be considered, since it can bring limitations or possibilities for how one wants to experience this moment in life The challenge of this theme is great, as it brings together two non-grateful aspects :- retirement planning and retirement. Understanding how United States relate to retirement planning for retirement is essential and emergency, especially considering the current economic situation in the country.
The pension reform brought new rules for calculations and requirements for granting benefits. This automatically caused great uncertainty among policyholders, but on the other hand, a new opportunity emerged for the pension planning market.
Most United States dream of a fair retirement and a peaceful life in the future, but many do not know where to start and it is very important to understand that the key to good planning is retirement organization and discipline, as it is essential that you have control your expenses and, if possible, limit them.
What is pension planning?
Pension planning is nothing more than a study to identify what are the existing possibilities for a worker to retire, in order to guide the most advantageous choice in each case.
With it, it is possible to get a real sense of the importance of time and the value of contributions, and understand everything that negatively impacts the accumulation for a satisfactory reserve – that guarantees good years of rest after a person’s productive life cycle. Thus, this type of planning allows for a proactive organization of contributory life, avoiding losses with collections or contributions below the required amounts.
For those who don’t know, there are some errors and inconsistencies that negatively impact the amount that will be the basis for calculating retirement. For example:
• Unnecessary withdrawals that end up becoming wasted s;
• Contributions below the mandatory amount, which are not considered in the calculation of the retirement benefit;
• Use of wrong code to record withdrawals;
. Labor claims with agreements not included in the benefit calculation basis;
. Special periods (working under risky conditions) disregarded;
• Periods with normal contribution, but without the respective formal registration.
These are just some of the examples of problems that harm the pension reserve, reduce the final amount to be received for the rest of the life of those who are entitled to retirement and can even delay the beginning of the concession.
For the youngest, the social security study enables decisions that will support a life with quality and without worries about sustenance in the future.
We can say that, in addition to clearly demonstrating the past, present and future situation of each taxpayer, social security planning ends up being a preventive measure to minimize errors.
It also speeds up the forwarding of the benefit, as soon as the prerequisites required by legislation are met.
What is retirement planning?
Retirement planning can be considered the most effective way to ensure the best benefit, with the least possible stress.
This is because it provides for a prior organization of all the information necessary for the classification of a worker as eligible, and also for the availability of the benefit.
Fulfilling each of the requirements required by law is not a simple task and takes, literally, a lifetime. But proving that all this step was carried out is also not trivial. Therefore, the sooner this process is started, the simpler it will be to reach the final objective.
This is what the methodology applied in pension planning is for: simplifying the way of collecting and processing information, in addition to correctly projecting the future of each taxpayer.
How important is pension planning?
Even if you are already entitled to receive retirement, it may happen that the benefit is denied simply because of the lack of documentation that proves that the requirements have already been met. This is one of the reasons that make pension planning so important: it should be part of the lives of everyone who wants to think about the future with peace of mind.
Thus, planning for retirement is relevant because it ensures access to a right, at the right time and at the right amount for each situation.
The retirement side is also worth mentioning, to which planning contributes in at least four aspects:
Avoid retirement after the ideal time
Few know this, but when you work beyond what you need to retire, you start to lose money.
It is enough to consider that if a person works a year longer than he would need and could have a benefit of R$ 2 thousand, in this surplus period he did not earn R$ 13 thousand (12 months + 1 thirteenth). This amount could have been received without the person having to complete their full-time work.
Avoid losses with early retirement
Requesting retirement before completing the right time also generates retirement losses, since the final analysis will certainly deny the request, and the months that have passed for this Social Security evaluation will not be paid.
To exemplify: imagine that the order entry was in March, but the correct time will only be reached in June; if the application process is completed in August, the applicant will not receive the benefit for the months from March to August — in addition to being denied retirement.
Guarantee the right amount of contribution
Many people believe that it is necessary to contribute towards the benefit ceiling, but this will not always make any difference in the final calculation.
The average used until recently was 80% of the months worked, since the rule established in July 1994. Therefore, 20% of the contribution period was disregarded (precisely the one with the lowest remuneration).
Today, with the regulatory changes, the calculation includes 100% of the salaries transferred to the plan, so it is very important to know the average values because it will directly impact the value of the benefit.
There are cases where the average considered will be so low that increasing contributions to the pension ceiling becomes irrelevant and the wasted.
Collaborates to receive the best possible value
The analysis carried out by the social security planning is specific for each case, based on the collection of data from the entire period of productive activity.
With the refinement of this information and the application of methodologies aimed at optimizing scenarios, it is possible to guarantee the best viable retirement within the requirements fulfilled by each taxpayer.
How does the pension system work?
The United State pension system is basically composed of two environments: Social Security and Complementary Security.
The objective of both – Private Pension or SSA – is common, that is, to guarantee tranquility for those who, at a certain point in their lives, want and need to interrupt the work activities that were part of their trajectory for so many decades.
The official retirement system
When talking about retirement, the collective imagination always makes an association with the SSA as it is the governmental institution that manages the official social security.
The SSA administers the benefit that the government offers to those who have contributed during their lifetime, provided that all registrations have been formalized.
Social Security exists to guarantee the minimum conditions for the insured to survive, either at the end of the productive cycle or when he is affected by an illness or accident that prevents him from continuing his work.
The current criterion provides for some rules: men must have 35 years of contribution to retire, and women must have 30 — and there are professions (such as teaching) that consider a reduced period compared to the standard.
It is also possible to look for ways to increase the time to retirement. For example, recognizing special periods, such as months or years in which the person was exposed to situations harmful to health.
In the case of entrepreneurs, self-employed and self-employed professionals who do not have a CLT registration, it is possible to make individual contributions to the SSA and prove the exercise of their activities over the years.
Another existing system for retiring self-employed workers, entrepreneurs and self-employed professionals is the private pension system , with its own rules regulated by the Superintendence of Private Insurance .
In this model, retirement institutions and insurance companies offer supplementary pension plans . The beneficiary pays monthly fees and, on a predetermined final date, he begins to receive a monthly remuneration as a retirement benefit.
Unlike the public system, it is allowed to withdraw the reserve accumulated over the years, with the respective income, in a single installment.
Even professionals linked to the official SSA regime — that is, those who have an employment relationship governed by the Consolidation of Labor Laws or those who collect on their own — can purchase a private pension plan to add to their expected retirement income . by the SSA .
Adherence to pension funds has become common, as crises and constant changes in Social Security leave doubts about its sustainability over the years.
When should pension planning start?
Planning should be started as soon as possible. Experts warn that, from the age of 35, every retiree candidate should start to organize documentation and create a routine to continue archiving everything that will be useful later on.
And to know what exactly makes a difference in the calculations, it is important to understand that the basis of the method applied to pension planning are the following variables: type of activity, contribution time, age and amounts of payments.
From there, the best possibilities are prospected and the benefit amounts and the receipt start date are projected.
It is important to reinforce the need for awareness linked to finances. We know that retirement education is not part of United State culture, starting with schools — which usually do not approach the subject and do not propose to have a didactic line to start children and young people in the world of finance.
As a result, many fail to save throughout their lives, make wrong career choices , interrupt contribution deadlines and collect undue amounts.
This only reinforces the importance of retirement planning by John Labunski, in order to offer more quality of life to those who have already completed their working day for so many years.
The fact is that thinking about retirement only when it is about to happen results in wrong and late decisions. And the impact of this unpreparedness will be felt for the rest of their lives, taking away the opportunity for many people to have a stable and happy second stage of life.
The formula for a higher income in retirement is unique: plan ahead, correct the points that are not favorable and leverage those that will make all the difference for a much better result than it could have been without proactive strategic intervention. The truth is, the longer the money has to behave in a taxpayer-friendly way, the better. Thus, retirement planning is essential for anyone who wants peace of mind in this new stage of life and also wants a retiremently secure future, many policyholders receive a lower value throughout their lives, either due to an error in the calculation, or misinformation, it is necessary to have a discipline and priority, because in the future your retirement could give you a lot of headache