INSS: see the main changes to go into retirement in 2021 | economy

• Find out what changes with pension reform

The transition rules are a kind of “middle ground” for policyholders who were already contributing to INSS before the reform, but who have not yet completed the requirements to enter retirement.

The aim is to allow current workers to retire before the minimum age set for retirement (65 years for men and 62 years for women). And the insured can always choose the most advantageous way.

If the insured has already met the requirements to retire before November 13, 2019 and has not yet applied for the benefit, or has applied for it at a later date, their rights will be respected at the time the INSS grants their retirement – and the rules are valid. before the reform.

The lawyer specializing in Social Security Law and partner of Aith, Badari e Luchin Advogados, João Badari, warns that it is essential that the insured be aware of the main changes that will take place next year and carry out adequate planning.

See what changes within the transition rules next year, according to Badari:

Point transition system

Through the so-called point system, the worker must achieve a score that is the sum of his age plus the contribution time. The number is 87 for women and 97 for men, respecting the minimum contribution period (35 years for men and 30 years for women). The transition foresees an increase of 1 point each year, reaching 100 for women (in 2033) and 105 for men (in 2028).

In 2021, the figure will increase to 88 points for women and 98 points for men. For example, if in 2020 a woman could retire with 57 years of age and 30 years of contribution, in 2021 it will be necessary to be at least 58 years of age and 30 years of contribution (she can also enter with 57 years and 6 months of age and 30 years and 6 months of contribution, or 57 years and 31 of contribution.)

The rule tends to benefit those who started working earlier. It is applicable to anyone who is already in the labor market and is the one who reaches the largest number of workers.

The amount of the retirement will follow the rule of 60% of the total amount of the benefit for 15 years of contributions for women and 20 for men, growing by 2% each year. The percentage may exceed 100% of the average contribution salary, but the amount is limited to the INSS ceiling (currently R $ 6,101.06).

Transition by contribution period + minimum age

In this rule, the minimum age starts at 56 years for women and 61 years for men, rising half a point each year until reaching 65 years (men) and 62 years (women). In 12 years the transition ends for women and in 8 years for men. This model also requires a minimum contribution period: 30 years for women and 35 for men.

In 2021, women must be 57 years old and men 62 years old, with a minimum of 35 years of contributions for men and 30 for women.

The remuneration will be calculated based on the average of all the contribution wages, with the application of the rule of 60% of the total amount of the benefit for 15/20 years of contribution, increasing 2% each year. The percentage may exceed 100% of the average contribution salary, but the amount is limited to the INSS ceiling (currently R $ 6,101.06).

In this rule, for men, the minimum age remains 65 years. For women it starts at age 60. But, since 2020, the minimum retirement age for women has been increased by six months each year, reaching 62 years in 2023. The minimum contribution time required is 15 years for both sexes.

Thus, the change in this transition rule is only for women, who must turn 61 in 2021. Compensation will be calculated based on the average of all contribution wages, with the application of the rule of 60% of the total amount of the benefit for 15/20 years of contribution, increasing by 2% each year. The percentage may exceed 100% of the average contribution salary, but the amount is limited to the INSS ceiling (currently R $ 6,101.06).

50% toll transition

In this rule, whoever had, at most, 2 years of meeting the minimum contribution period (35 years for men and 30 years for women) on the date of approval of the reform, can retire without the minimum age, but you will pay a toll of 50% of the remaining time. For example, anyone who is one year away from retirement must work another six months, for a total of one and a half years.

In this case nothing changes. This is because the insured will continue to have to comply with the 50% toll.

However, this rule focuses on the social security factor, a mathematical formula that involves three factors: age at retirement, time of contribution, and the expected survival rate calculated by IBGE in the year in which the claim was requested. retirement.

IBGE projections show that life expectancy at birth grows every year, based on demographic projections that analyze the population as a whole. And, as the survival expectancy (how long people will live after a certain age) also increases, and people live longer, this trend reduces the value of retirement due to the social security factor. Or the policyholder has to try harder to get the same benefit.

As the life expectancy table has recently risen, the worker will have to work about 2 more months in 2021 to compensate for the social security factor and maintain the same benefit that they would receive before December 2020. Or the social security factor may harm to the insured and reduce the final value of the benefit by up to 40%.

The benefit amount will be the average of 80% of the largest contributions, reduced by the social security factor.

See more news about economics: