Private pension plans

What it is

With a PGBL, anyone who files the full income tax return can deduct part of their taxable income. With a VGBL, tax falls only on the earnings. Choosing between the two depends on your tax return, not on taste.

Portability is where the most is gained: an old plan with a high administration fee can be moved without leaving its tax regime.

When it makes sense

• You file your income tax under the full return
• There is an old plan with a high fee sitting idle
• You want to plan succession outside probate

How it works

• DiagnosisI look at your tax profile and your horizon.
• ChoicePGBL or VGBL, regressive or progressive tax table.
• SigningPlan opened with a defined contribution.
• PortabilityMigration of the old plans, if it makes sense.

What you will need

• Photo ID, CPF (Brazilian individual tax ID) and proof of address
• Latest income tax return
• Statement of the current plan, if there is one

The list can change with the institution and the size of the deal. I confirm what is actually required before you gather a single document.