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Would you like to secure R$ 5,000 in retirement after many years of dedication? Find out how.
Retirement is always a concern for many, from newcomers taking their first career steps to veterans approaching retirement. With the recent changes to Social Security, the main concern now is how to maintain one's standard of living after leaving the workforce.
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In this situation, workers face two choices: comply with the rules of the National Institute of Social Security (INSS), considering the amount and duration of contributions to reach a specific retirement benefit, or diversify their investments in funds and financial assets.
The most recommended approach is to start financial planning for retirement as soon as possible. However, this does not prevent those who are older from getting organized as well. Below, we will explain how much someone needs to save to secure R$ 5,000 in retirement.
How to achieve a R$ 5,000 retirement benefit?
Initially, it should be understood that simply saving is not enough. To reach R$ 5,000 in retirement, it is vital to invest a portion of your savings. Additionally, the amount to be invested will depend on the investor's age.
For example, a 30-year-old individual planning to retire at 65 should direct their resources toward an investment that generates around 7.5% per year. In this way, they should contribute approximately R$ 640 each month.
After reaching 65, they should maintain their investments to safeguard their retirement funds. In this scenario, the investments may generate around 3% annually.
Read also:How to use the ‘bring money’ feature in Open Finance?
And what about someone who is 50?
If a 50-year-old professional wishes to retire at 65 with an amount of R$ 5,000, they will have to make larger contributions. Therefore, the investments should yield around 4.65% per year, and the monthly contributions need to exceed R$ 4,600.
