09 Jan, 2017
Brazil private pension plan contributions surge
Contributions to Brazil’s open private pension plans grew 26.1 per cent in November 2016 compared to the same month the year before, amassing 11.3bn reais (US$3.51bn), according to figures from national private pension and life insurance association Fenaprevi.
Seeing an upsurge in interest, the open plans cater to the general public – something the closed pensions plans do not, as these are meant for employees of specific companies.
In the same timeframe, net funding posted a positive result of 6.52bn reais ($US2.03bn), showing growth of 35.9 per cent compared to the 4.80bn reais registered in November 2015.
The most contributions were made to individual plans, with funds reaching 9.84bn reais ($US9.84bn)– 171 million of them being allocated to plans for minors. Contributions to business plans totalled 1.43bn reais in November.
During the first eleven months of 2016, funds reached 98.2bn reais ($30.62bn), a 19.1% increase over the same period the year before. Net funding was 49.5bn reais, up 22.9% compared to the same quarter in 2015.
Individual plans, again, received the most contributions. In total 85.7bn reais ($26.73bn) were put in, with 1.75bn reais allocated to plans for minors. Contributions to business plans, in turn, totalled 12.5bn reais.
This comes in tandem with Governmental reforms, which have been criticised by some as putting the country “further away from a meaningful overhaul.”
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