In Brazil the retirement funds have different tax regimes, deferred taxes and in some cases deductions on national income. Over the long run it makes a big difference on the returns

There are two retirement regimes, PGBL and VGBL, and two tax treatments, progressive and regressive. You can pick any of each

With PGBL you can deduct the contributions from your national income base up to 12%. So if you make R$ 100k a year, you can contribute R$ 12k to the PGBL and your national income will be on R$ 88k. However, since you’ve been deducing contributions over the years, when you withdraw you pay taxes on top on everything (pricipal + interest)

On the other hand with VGBL there are no deductions, but taxes run on the interest only. It is not uncommon for people to have both, PGBL until you hit the 12% seiling and then contribute everything else to VGBL. HNWI usually go straight to VGBL

There are no time minimuns to withdraw in private plans, although company/goverment pension plans do have age minimuns and penalties if you withdraw early. There are options for annuity withdraw (and the money stays invested) and lump sum withdraw

In the progressive tax treatment you use the same national income tax brackets. In the regressive treatment what matters is how long the money stays invested:

0 - 2 years: 35% 2 - 4 years: 30% 4 - 6 years: 25% 6 - 8 years: 20% 8 - 10 years: 15% Over 10 years: 10%

So if you’re looking 10+ year into the future, there are no investments with lower taxes than these. Also, private pension plans have succession benefits, as (i) you can name a beneficiary and when you pass the money goes straight to them, like a life insurance, and it not caught up in the estate/inventory process; and (ii) there are no inheritance tax on private pensions

• https://www.safra.com.br/central-de-conteudo/aprender/pgbl-ou-vgbl-entenda-como-funciona-cada-modalidade.htm
• https://www.onze.com.br/blog/tabela-imposto-de-renda-da-previdencia-privada/