How does the private pension benefit work in companies?

The private pension benefit is a model used in companies and is offered as another of the company's benefits for employees.

And this is a way for companies to demonstrate their concerns about the current Social Security scenario. Due to recent changes, receiving retirement is becoming an increasingly longer path.

What is the private pension benefit?

This benefit is an investment by companies in their employees, it can be medium to long term, and is in no way related to the Federal Government or the social Security.

This is a practice that has become very common in more developed countries, such as the United States, where more than half of companies offer this benefit.

But in Brazil, private corporate pensions still represent only 60% of companies, that is, 8% of Brazilian workers.

Why invest in private corporate pensions?

When a company invests in private pension benefits, some people may end up thinking that this is a waste of money as it is not something mandatory to be offered according to the CLT.

However, every day more and more talented professionals in the market are migrating to companies that value their work, are humanized and care for their employees' well-being.

And this includes this investment and human appreciation, so it is a way to retain the best talents, and for those who already work with you, it is a possibility to make them more productive and motivated.

Furthermore, given what we experience every day, it is increasingly uncertain what will happen when we reach the end of our retirement journey, so it is always good to have a plan B.

In other words, for a company's employee, it is a way of accumulating assets for their uncertain future.

Types of private pension benefits

There are two types of private pension benefits, and it is important to clarify what they are and how they work, at least in a basic way, check out:

Plan established

In this type of plan, the employer gives the employee the opportunity to contribute to their private pension every month.

There is a term called match rules, which will define the percentage given by the company on the monthly contribution that the employee has been making.

In this sense, according to the agreed rules and if the match is, for example, 100%, for each real R$2 invested by the employee, the company will contribute more R$2.

This is an additional benefit to the salary and can be offered by entities, unions or associations.

Endorsed plan

The endorsed plan refers to when the company does not contribute to social security, that is, not to the match.

And it ends up being advantageous for the employee as they will have access to a form of investment to protect themselves in the long term.

Knowing about your future after retirement and how things might be in the future is a great way to prepare and not be left hanging or stressed when that moment comes.