PGBL (Pension Plan) or VGBL (Pension Plan)? Simulate and Choose with Intelligence

Compare the two main private pension plans in Brazil, calculate the impact of income tax on each tax regime, and discover which product generates more liquid wealth for your profile.

Quick Profiles:
Public Servant CLT $10,000/month Self-Employed $5,000/month
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Total Accumulated PGBL (Pension Plan)
$ 0.00
Total Accumulated VGBL (Pension Plan)
$ 0.00
IR on PGBL (Pension Plan) Withdrawal
$ 0.00
IR on VGBL (Pension Plan) Withdrawal
$ 0.00
Final Liquid PGBL (Pension Plan)
$ 0.00
Final Liquid VGBL (Pension Plan)
$ 0.00
Accumulated Fiscal Benefit PGBL (Pension Plan)
$ 0.00
Net Advantage
$ 0.00

Accumulated Wealth Evolution

PGBL (Pension Plan) Result Composition

Year-by-Year Breakdown

Year Accumulated PGBL (Pension Plan) Accumulated VGBL (Pension Plan) IR PGBL (Pension Plan) IR VGBL (Pension Plan) Liquid PGBL (Pension Plan) Liquid VGBL (Pension Plan)

What is PGBL (Pension Plan) and VGBL (Pension Plan)? Understand the differences

Private pension in Brazil is divided into two main products: PGBL (Pension Plan) (Plan Generator of Free Benefit) and VGBL (Pension Plan) (Life Generator of Free Benefit). Although similar in accumulation structure, the taxation form is radically different and can impact tens of thousands of dollars in final wealth.

PGBL (Pension Plan) — For those who declare IR in the complete model

PGBL (Pension Plan) allows deducting contributions made in the year of the income tax calculation base, limited to 12% of gross taxable annual income. This fiscal benefit reduces the tax to be paid in the short term. In contrast, at the time of withdrawal, the IR levies the total withdrawn value (principal + earnings).

VGBL (Pension Plan) — For simplified, exempt, and complementary PGBL (Pension Plan)

VGBL (Pension Plan) does not offer a fiscal benefit during the accumulation phase. At withdrawal, however, the IR levies only the earnings (gains), sparing the principal capital from taxation. It is classified as life insurance, not as complementary pension.

Regressive Table — For those who think about the long term

The regressive table is exclusive to private pension and reduces the income tax rate as the money remains invested. It is the most efficient option for those who plan to withdraw after many years:

Accumulation PeriodIR Rate
Up to 2 years35%
2 to 4 years30%
4 to 6 years25%
6 to 8 years20%
8 to 10 years15%
Above 10 years10%

Progressive Table — The standard IR table

In the progressive table, the IR on withdrawal follows the same rates as labor income. It is calculated on the withdrawn amount and can be paid or complemented in the Annual Declaration. The rates are:

Annual Calculation BaseIR Rate
Up to $24,511.92Exempt
From $24,511.93 to $33,919.807.5%
From $33,919.81 to $45,012.6015%
From $45,012.61 to $55,976.1622.5%
Above $55,976.1627.5%

Frequently Asked Questions

PGBL (Pension Plan) is indicated for taxpayers who make the Complete Declaration of Income Tax and have a marginal income tax rate of at least 15%. The benefit occurs because the annual contributions to PGBL (Pension Plan), limited to 12% of gross taxable income, are deductible from the income tax calculation base. This generates an immediate "discount" on the tax to be paid. On the other hand, if you make a Simplified Declaration (which uses the standard 20% discount), there is no basis for deducting PGBL (Pension Plan), making VGBL (Pension Plan) the superior option for this profile. Self-employed individuals with variable income, exempt from IR, or those who have already reached the 12% limit of gross taxable income should also opt for VGBL (Pension Plan).

The regressive table is a taxation exclusive to private pension that progressively reduces the income tax rate as the term of accumulation increases. It starts at 35% for withdrawals in less than 2 years and drops to only 10% for resources kept for more than 10 years. For context, conventional fixed income investments taxed reach up to 15% of IR at maximum (regressive table of investments). Therefore, the regressive table of the pension is only advantageous for terms above 10 years, when the 10% rate surpasses the 15% maximum of other products. For shorter terms, the progressive table may be more efficient — especially if the annual withdrawn amount is low enough to fall within the exempt or 7.5% ranges.

Yes, you can perform a portability between private pension plans without paying tax at the time of transfer — as long as the portability is done between products of the same nature (PGBL (Pension Plan) to PGBL (Pension Plan), or VGBL (Pension Plan) to VGBL (Pension Plan)). It is not possible to migrate directly from PGBL (Pension Plan) to VGBL (Pension Plan) via portability, since they are products of different legal nature. As for the tax regime (progressive or regressive), the change is only allowed from progressive to regressive, never the other way around, and the term count starts from the day of migration, which directly impacts the regressive regime rate. Therefore, it is fundamental to plan the tax regime from the beginning of the investment.