See the INSS retirement amount with the social security factor

Workers who will apply for retirement from the INSS (National Social Security Institute) under the 50% toll transition rule, created in the Social Security reform, will have their benefits calculated with the new social security factor discounts.

The Ministry of Labor and Welfare released the updated factor table, which is already in force and will also be valid in 2022, and informed that the new indexes began to be applied to retirements since November 25, the day on which the IBGE (Brazilian Institute of Geography and Statistics) published the mortality table, with information projected from 2010 Census data, which do not include the effect of the Covid-19 pandemic.

The toll transition rule fully reached workers in their 50s who were close to retiring due to contribution time, a benefit that, before the reform, required 30 years of payments to the INSS (female) or 35 years (male) .

At the 50% toll, it is still possible to retire without a minimum age, but the worker must contribute for half the time before retirement. A worker who, on November 13, 2019, was between 28 and 30 years old (women) or between 33 and 35 years old (men) can retire through this transition.

According to actuarial consultant Newton Conde, from Conde Consultoria Atuarial, despite the pension reform having already completed two years, there are still policyholders who will retire at the toll in the next 12 months and will have the new pension factor discounts.

For example, if you were two years away from retiring in November 2019, you have to pay an extra year toll, totaling three years until you manage to retire. In other words, you can apply for the benefit to the INSS in November 2022.

Benefit for those in their 50s

• The calculations were made by consultant Wagner Souza, from Ieprev (Institute for Social Security Studies)

• For men who, on 11/13/2019, were 33 years old, seven months old and 17 days of contribution to the INSS
• The simulations consider that the request for retirement was made on December 2 of this year, when the insured completed 35 years, eight months and 26 days of payments to the INSS

55 year old men

56 year old men

57 year old men

• For women who, on 11/13/2019, were 28 years old, seven months old and 16 days of contribution to the INSS
• The simulations consider that the request for retirement was made on December 2 of this year, when the insured completed 30 years, eight months and 26 days of payments to the INSS

50 year old women

51 year old women

52 year old women

understand the factor

Created during the Fernando Henrique Cardoso (PSDB) administration, the social security factor is an index that takes into account age, contribution time and expected survival. The older the age, the lower the discount applied to retirement due to contribution time.

The difference between the discount applied in the current factor table and in the previous one is not large, but the reduction in the benefit will be permanent, says Conde.

Social Security Reform

The Social Security reform created a general calculation for pensions: 60% of the average salary plus 2% for each contribution year that goes beyond 15 years for women and 20 years for men. But in the two toll transitions, the calculation is different: in the 50% toll the social security factor is used and in the 100% toll the full benefit is paid.

Another situation in which the social security factor is still used is in cases where the worker is able to prove that he was entitled to retire before the start of the reform, that is, before November 13, 2019. He will have to prove to the INSS that he has the right acquired, but, according to Social Security, the factor table valid on the day he completed the requirements will be used. One of the advantages of the acquired right is having the benefit calculated with the old salary average, which discards salaries with lower values.