Step 4: Benefit Calculation
After the Pension Reform of 13/11/2019, to calculate the value of retirement, the average of all salaries (100%) is considered to establish the final amount to be received as retirement.
However, the minimum divisor is applied, a fixed amount, for those who have less than 108 contributions after July 1994. In other words, applying the minimum divisor, the basis for the retirement value will be the division of the sum of salaries by 108 See some practical examples:
After determining the base or average retirement value, a general rule applies to calculate the final value of most retirements as of the Pension Reform (13/11/2019). Remembering that the following calculation does not apply to taxpayers who need to apply the minimum divisor.
The calculation is done as follows:
- Salaries since July 1994 are added.
- The average salary value is then calculated (sum of salaries/months of contribution)
- From the average value, 60% + 2% is calculated for each year exceeding:
- 20 years of contribution time for men.
- 15 years of contribution time for women.
- 20 years of contribution time for male and female public servants.
See the following example:
Step 5: Tools and Simulators
Several online tools and simulators are available to facilitate the INSS calculation. These resources help you estimate your retirement value based on your contributions and length of service. Access the My INSS official website or other reliable platforms to use these simulators and get an accurate view of their benefit.
Requirements for retirement based on contribution time
- Women: 30 years of contribution time + 91 points;
- Men: 35 years of contribution time + 101 points
Requirements for retirement by age
- Minimum requirement of 180 contributions;
- 15 years of contribution time;
- Minimum age of 65 years old if male or 62 years old if female.
Conclusion
Calculating the INSS may seem challenging, but with the Practical Guide to Calculating the INSS providing the right information and tools, you can plan your retirement efficiently. This step-by-step guide gives you a solid foundation for understanding and calculating your contributions and benefits. If you still have questions, consult a pension specialist or use the online tools available to ensure your planning is up to date.