Many individuals believe that just the act of contributing to the National Social Security Institute (INSS) is enough to ensure a peaceful financial future. However, a frequent failure can result in the benefit being restricted to the amount of the minimum wage, even after long years of contributions to the system.
The heart of this issue is directly linked to the payment method that the insured person chooses for Social Security. In several situations, the option for simplified payment methods ends up establishing a ceiling on the value of retirement, without the worker fully understanding the long-term repercussions.
INSS rules for specific cases of dependency
Social Security surveys indicate that a significant portion of retirees receive only the minimum amount provided by the INSS. Currently, millions of insured people depend exclusively on the social security minimum, a direct result of contributions made based on more modest salaries during their careers. This reality imposes a considerable socioeconomic challenge, making it difficult to maintain a decent standard of living in old age and highlighting the urgency of more conscious pension planning.
The calculation of the retirement amount is determined by the insured’s payment history. Following the Pension Reform, which came into force in 2019, the calculation methodology started to consider the average of all contribution remunerations registered since July 1994.
Types of contribution that restrict the value of the social security benefit
One of the most common mistakes occurs when taxpayers choose payment methods with reduced rates, unaware of the limitations that these choices impose on future retirements.
Among the available contribution categories are:
- 5% rate on the minimum wage:Targeted at Individual Microentrepreneurs (MEI) and low-income policyholders duly registered in the Single Registry (CadÚnico);
- Simplified contribution of 11%:Adopted by a portion of individual taxpayers;
- 20% contribution:Considered the full form of collection.
In the first two situations, the insured person guarantees access to the benefits offered by Social Security, but retirement remains restricted to the minimum wage level. Only a 20% contribution allows the construction of a benefit that exceeds the national minimum.
Growth projections for retirement value
Although the final amount of retirement depends on variables such as length of service, age and salary history, some simulations offer clarity on the impact of contributions accumulated throughout professional life:
- Average contribution of R$1,618 (minimum wage):Retirement estimated at around R$1,618;
- Average contribution of R$2,500:Projected benefit between R$2,000 and R$2,300;
- Average contribution of R$4,000:Retirement expected between R$3,200 and R$3,700;
- Average contribution of R$6,000:Benefit calculated between R$4,800 and R$5,500;
- Average contribution of R$8,000:Expected retirement between R$6,400 and R$7,300.
It is important to highlight that these values are approximate and consider the current INSS standards, in addition to a sufficient contribution time to increase the percentage applied to the average salary.
Strategies to increase the level of social security benefits
Experts advise workers to monitor their pension history continuously and carry out simulations to have a clear estimate of the value of the future benefit.
Anyone who has additional income from complementary activities can also make contributions as an individual taxpayer, which results in an increase in the calculation base used by the INSS. Additionally, maintaining regular payments for an extended period can increase the percentage applied to the average salary, positively impacting the final retirement amount.
The importance of simulation for pension planning
The National Social Security Institute itself offers resources so that policyholders can monitor their social security situation. Through the application or the Meu INSS portal, it is possible to access the “Simulate Retirement” tool and check estimates of the remaining contribution time, as well as the projected value of the benefit.
Prior consultation allows potential problems to be identified and the contribution strategy adjusted before applying for retirement, preventing the worker from discovering only when applying for the benefit that they will only be entitled to the minimum wage.
