Retirement by age: the legislative reform has changed the rules

After the 2019 pension reform, the minimum age for women increased from 60 to 62; the men remained at age 65

The old-age pension is one of the benefits of the INSS (National Institute of Social Security). Approved in 2019, the pension reform changed both the contribution time and the minimum age, in this case only for women.

In Brazil, the law in force requires at least 65 years for men and 62 for women – previously the age was 60. And the time of contribution to the INSS must be at least 20 years for men. Previously the calculation was 15 years for both men and women.

“Furthermore, the social security reform has created transitional rules for policyholders who already paid social security contributions previously. These rules allow policyholders to retire with shorter contribution periods than required by the general rule, with the 15 years for both sexes”, explains André Beschizza, INSS benefit lawyer.

How the benefit is calculated

The value of the old-age pension varies according to the regulation to which the beneficiary is entitled. Pre-Reform retirees (until 12.11.2019) received 70% of the average of their top 80% income as of July 1994, plus 1% for each full year of work.

As for those falling under the transition rule, they receive 60% of the average of all their salaries since July 1994, plus 2% annually over age 15 for women and age 20 for men. Those who started contributing after the Reform receive 60% of the average of all their salaries since 1994, plus 2% annually over 15 years for women and 20 years for men.

It is worth noting that those who have not contributed to Social Security throughout their lives cannot retire by age. The old-age pension is a social security benefit, warns Beschizza.

Alternative pension model

Those who have not contributed to the INSS throughout their lives can take advantage of other pension possibilities, such as the Continuous Benefit (BPC). The BPC is an assistance benefit granted to elderly people aged 65 or over and who prove the condition of poverty. To be eligible for the BPC, older adults must not have contributed to Social Security.

“The hybrid age pension is a benefit granted to the insured person who does not have the minimum contribution time required for age pension, but who has worked as a rural worker (boia-fria, farmer or fisherman) registered in the CTPS and periods of formal activity has contributed to the INSS”, concludes Beschizza.

To find out more just go to: www.andrebeschizza.com.br AND https://andrebeschizza.com.br/quem-nunca-contribuiu-pode-se-aposentar-por-idade/

Website: http://www.andrebeschizza.com.br

Source: Terra

Rose

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