The internet has transformed the experience of buying products, contracting services and consuming content, with everything just a few clicks away.
Technological advances and the spread of digital platforms have also democratized access to information. Learning about investments and making the right choice for your investor profile has become more practical.
It is already possible to hire private pension plans through digital brokerages, known as savetechs.
But to what extent is it advisable to carry out an investment considered highly strategic and long-term online?
Paulo Carvalho, a lawyer for the Trench Rossi Watanabe social security group, explains that savetechs work in a similar way to fintechs. Both did not invent new financial products, but simplified and digitized access to these products.
“In practical terms, savetechs intend to extend and simplify access, mainly, to private pension products”, he says.
In Brazil, Saks claims to have been the first startup in this sector to start operating. Among the differentials offered are options to pay private pension installments using a credit card or via Pix. According to the platform, it is possible to hire a private pension plan in less than five minutes.
Other startups have appeared on the market and offer the possibility of contracting private, individual or business pension plans, 100% digitally.
For specialists, the digitization of contracts is a trend and should also be followed by more traditional brokers and banking institutions. However, even all this practicality does not rule out the need to seek information and, when necessary, the help of specialists.
Investing over the internet will become more and more natural
With the leap in technology use during the pandemic, people have become more comfortable with performing digital and remote operations.
For Fábio Garcia, commercial director at Lifetime Investimentos, it was also at this time that less computer-savvy investors began to seek more information on electronic channels.
According to Garcia, the platforms are suitable for making contributions, consulting plans and periodically evaluating whether or not the objectives have been achieved.
For Francisco Reis Jr, head of private pension at MAG Seguros, the innovation is advantageous for the investor, since the internet allows access to a wide range of information that can help him understand the existing alternatives, including private pension .
“If the person is already aware of how a plan works and its possibilities, it is quite possible to hire [online]. If we think from a strategic point of view, currently, the market even presents comparison tools that help to make a more efficient and consolidated choice”, he says.
Specialist in business management and financial assets at W Financial, Paco Fazito argues that it is already possible to contract a private pension plan virtually in complete safety. He believes that the tendency is, in the future, for manual operational processes to fall into disuse, but does not rule out the need for adequate guidance, regardless of the form of hiring.
“The participation and guidance of a specialized professional is essential to guide the choice of private pension and, if possible, one that does not have conflicts of interest.”
Before purchasing a plan, research
The investor needs to be careful in some aspects before closing a private pension plan. The first of them is the choice of insurance company, whether digital or not.
As they are brokers, savetechs are subject to market regulation in accordance with Susep (Superintendence of Private Insurance) rules.
According to the lawyer, it is worth being concerned about researching whether the company behind the application is real and reputable, to avoid any type of scam or financial adventure.
For the W Financial specialist, other points that need to be observed by investors are: fees and redemption deadlines. Depending on the contracted plan, redemptions made before two years may be subject to taxation of up to 35% of the Income Tax.
The head of private pensions at MAG Seguros points out that investors need to check whether the plan offered meets the Income Tax declaration profile they make (whether using the full model, which allows deductions, or the simplified one, with a standard discount).
He also says that it is necessary to know the insurer’s experience and services in pension and make a personal financial analysis to determine which value is the most appropriate to invest monthly or sporadically.
“The greater the savings discipline and performance efficiency, the greater the success in the mission of achieving financial independence.”
Attention to fee collection is essential
A private pension plan may charge a monthly loading fee –which serves to cover administration and brokerage costs— and an administration fee, which is levied on the total value of the equity invested.
Typically, administration fees are between 1% and 2% and loading fees can vary between 3% and 5%.
According to Paco Fazito, there is no regulation that sets a limit on the fee charged and the percentage may vary according to the fund chosen by the insurance manager.
“There are funds with low fees and poor performance. Some funds have higher fees, with good performance and, therefore, are worth it. The ideal is to find funds that have a lower fee and good performance, but this is who will probably be able to instruct the client is a specialized professional.”
For the superintendent of MAG Seguros, it is necessary to take a closer look at the management fee, as it directly interferes with final profitability.
“These expenses can impact the amounts invested, whether on entry or on investment performance. The ideal is always to choose the fund that offers a good combination of low costs and solid performance, within a level of risks compatible with your profile. There is no point in offering only low administration fee if the results are not satisfactory. The best possible combination of these factors is always important.”
All applicable rates, and the Income Tax rule to be chosen, must be previously presented to the investor and must be included in the contract that formalizes adherence to the PGBL or VGBL.
The investor should compare the rates offered and the profitability estimates.
Difference in the collection of Income Tax
In the progressive table, the rates are defined based on the investor’s total income. That is, 15% at source and the remainder in the Income Tax adjustment declaration delivered in the following year.
In the regressive table, taxation is done directly at source and varies according to the time the money was invested, ranging from 35% (upon redemption up to two years) to 10% (after ten years).
Because of this complexity, it is not always recommended that the investor choose the private pension plan alone. “The orientation of professionals who are free from conflicts of interest is essential”, says the specialist from W Financial.
“Whoever sells just looking to beat the target of the institution he works for can cause losses to the customer. Unfortunately, this sales process happens frequently in the Brazilian financial market.”
What to know before hiring an online private pension plan
Savetechs, what they are? Savetechs are startups that work as digital insurance brokers. They emerged with the aim of digitizing and simplifying access to financial products, such as private pensions.
What is the difference between savetechs? Quickly hire private pension plans over the internet and options to pay investment installments using a credit card or via Pix.
Is it safe to hire a plan through Internet? Experts argue that it is possible to hire a private pension plan virtually in complete safety and that it is unlikely that we will have manual operational processes in the future. The tendency is for other brokerage houses and banking institutions to join the modality in the future.
What precautions to take before closing a contract? Check if the company behind the application is real and reputable to avoid any type of scam or financial adventure. Understand how private pension plans work before closing the contract. Research about fee amounts and redemption deadlines.
How to know which plan is best for youto my profile? It is advisable to carry out a personal financial analysis to determine which amount is the most appropriate to invest monthly or sporadically.
It’s important to talk to a professional? Yes, if you are in doubt, it is important to seek help from professionals free of conflicts of interest who can help you understand whether private pension plans are a good investment for you.
Source: Trench Rossi Watanabe; W Financial; MAG Seguros and reporting
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