As of today (30), citizens have at their disposal an instrument to complement their retirement. The Treasury Income+ Retirement Extra bond began to be sold on the B3, the Brazilian stock exchange, which requires an initial amount of R$ 30 and can be accrued from 7 to 42 years.
Offered by Treasury Direct, a program for the sale of public securities to individuals over the internet, the paper allows investors to plan a date for retirement and receive an extra monthly income for 20 years. The amount invested will be corrected monthly by inflation plus an interest rate that varies according to economic conditions, guaranteeing the investor’s purchasing power.
“The Treasury Income+ Retirement Extra is a very important financial education program to help families realize the benefits that saving some portion of their income can generate in the future. With advancing age, this action of saving from the beginning of one’s working life can generate a great benefit in terms of extra income”, said the secretary of the National Treasury, Rogério Ceron, at the event to launch the public bond, at the headquarters of the B3, in São Paulo.
The amount invested will always be returned in 240 monthly installments that will amortize all the money invested in the product. The initial value for the investor to start investing in the product is around R$ 30.
The National Treasury expects the adhesion of up to 3 million workers, which would expand the public of the Direct Treasury to around 5 million investors. The body clarifies that government bonds will work as a complement to retirement and will not replace the pension scheme by allocation of the National Social Security Institute (INSS) or the special pension scheme for civil servants.
Accumulation
The capital accumulation period, equivalent to the life of this security, ranges from 7 to 42 years, depending on the maturity chosen by the investor. There are eight maturity dates for the security, from January 15, 2030 to January 15, 2065, always with five-year intervals between one security and another (2030, 2035, 2040, 2045, 2050, 2055, 2060 and 2065).
“People just need to know when they intend to retire and how much they want to receive per month when they get there. From these two pieces of information, we calculate how much that person needs to contribute per month to achieve their desired security when they stop working”, explained the Undersecretary for Public Debt, Otávio Ladeira.
The investor who buys this security will have an advantage. B3’s custody fee, currently at 0.2% of the total invested in Treasury Direct (0.1% paid twice a year), will not be charged to investors who carry the investment until the maturity date, with the limit of up to six minimum wages in the flow of future monthly payments. Above that, 0.1% per year will be charged on the surplus.
Investors who redeem bonds in advance before ten years will pay a rate of 0.5% per annum on the redemption value. Between 10 and 20 years, the rate charged will be 0.2% per year. Above 20 years, 0.1% per year. In this case, there are no semester fees charged. The investor only pays the custody fee at the time of redemption that occurs before the maturity of the bond.
Income tax
The worker needs to keep in mind that the Renda+ Treasury is a long-term investment. Redemptions before the maturity of the bonds could bring double damage. First, because the paper will be sold at market value, which is usually lower than the theoretical value that the investor will receive if he holds the bond until the end of the term. Second, because there is taxation.
In Treasury Renda+, if there is an advance sale of the security, the investor pays a decreasing rate, which follows the regressive Income Tax table for any investment in fixed income. The rate varies from 22.5% for redemptions up to 180 days after the investment; 20% between 181 and 360 days; 17.5% between 361 and 720 days; and 15% after 720 days.
The lowest rate, 15%, makes the investment disadvantageous in relation to those who choose the regressive Private Pension Funds table, which pays 10% Income Tax for investments over ten years. Therefore, the Renda+ Treasury is recommended for workers without access to pension or private pension funds and who invest small amounts.
Fund-raising
The Direct Treasury was created in January 2002 to popularize this type of application and allow individuals to acquire public securities directly from the National Treasury, via the Internet, without the intermediation of financial agents. More information can be obtained from the Treasury Direct website.
The sale of securities is one of the ways the government has to raise funds to pay debts and honor commitments. In exchange, the National Treasury undertakes to return the amount with an additional fee that may vary according to the Selic rate, inflation rates, exchange rates or a rate defined in advance in the case of pre-fixed securities. The new securities destined to supplement retirement are linked to the IPCA.
