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See All Points Retirement Benefits and Calculations

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A Points Retirement is a pension system that aims to offer workers a flexible alternative to retirement, taking into account not only age, but also contribution time and life expectancy.

So, it was created to benefit those who started their careers earlier and have already accumulated considerable contribution time.

Understanding how this method works is essential for anyone looking for adequate planning for the future.

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So let's explore what it means and how to calculate the points needed to retire under this system.

But After All, How Does Points Retirement Work?

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Unlike the traditional model, in which only contribution time and minimum retirement age are considered, the Point Retirements is based on the sum of the worker's age and contribution time.

Furthermore, this sum must reach a certain number of points stipulated by social security legislation.

For example, to retire under this system, it is necessary to reach 86 points for women and 96 points for men, in 2022.

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However, the law establishes that these points will gradually increase over the years, following the population's life expectancy.

Therefore, it is crucial to be up to date with current requirements to avoid surprises at the time of retirement.

Find out now who is entitled to a points pension

To be entitled to retirement points, Some requirements must be met.

So, the good news is that this type of retirement does not require a minimum age.

Therefore, to qualify for this benefit, simply reach the minimum contribution time required and the required score in the year in which the retirement request is made.

So, see who is entitled to points retirement:

See the Step-by-Step Guide to Calculate Retirement Points

O calculation of points in Points Retirement It's simple: just add the worker's age to the social security contribution period.

For example, a person aged 60 and with 26 years of contributions would have 86 points (60 + 26 = 86), meeting the necessary criteria for eligibility. retirement in the case of women, according to the 2022 legislation.

Another important aspect is that, despite the flexibility provided by this system, it is essential to stay informed about possible changes in social security legislation.

These changes may significantly impact the requirements for points retirement.

See This Practical Example of Retirement Calculation

To illustrate, let's consider a worker who started contributing to Social Security at age 25.

Over the years, this individual maintained a regular contribution, totaling 35 years of contributions upon reaching the age of 60.

Applying the calculation (60 years of age + 35 years of contribution = 95 points), this person exceeds the 86 points required for women in 2022, being eligible for point retirement.

On the other hand, a worker who started contributing later or had periods of interruption in contributions will need to adjust their strategy to reach the necessary points within the legal requirements.

But after all, is Points Retirement Worth it?

Yes, opting for this type of retirement is an advantageous choice.

After all, this modality allows policyholders to avoid the application of the social security factor, which can result in a greater benefit.

Furthermore, flexibility is an advantage, as it allows policyholders to choose when they want to retire, based on the sum of points (age + contribution time) required.

However, the decision whether or not to choose the points retirement it should be based on a careful assessment of all personal and financial factors.

Therefore, it is recommended that policyholders seek guidance from a social security or financial professional to select the retirement modality more appropriate.

Conclusion

A points retirement offers an interesting alternative for policyholders INSS who wish to avoid social security factor and ensure a fairer benefit.

Therefore, it is essential that policyholders understand the rules of this modality and how they changed after the Pension Reform, in order to carry out adequate retirement planning.

However, it is important to remember that you should consider all available options before making a decision!

After all, each case is unique and requires careful analysis when requesting retirement.