Retirement by points: see what it is and how it works!

Retirement is one of the most anticipated moments for a large part of the population who, after years of work, can enjoy their rights and take advantage of the salary granted to them.

However, in recent years, retirement rules have changed. One of them is points-based retirement. Do you know how this type of retirement works?

In this article, we'll detail everything you need to know about points-based retirement and how to get yours. Stay tuned to the end and get all your questions answered!

Check it out here:

• How are retirement points calculated?
• Retirement Points Table 2023
• How to apply for retirement based on points?

What is points-based retirement?

When it comes to retirement, there are several categories under which you can apply for your benefits. Retirement based on points is one of them.

The establishment of retirement by points was implemented through the enactment of Law No. 13,183/2015, in 2015.

This type of retirement is based on the accumulation of points by the contributor, the calculation of which results from the sum of their age and the period of social security contributions.

To illustrate, consider a person who is 58 years old and has contributed for 32 years, with a total of 90 points.

It is important to note that this retirement category does not establish a minimum age for application and does not require consideration of the social security factor, which is usually used when ensuring the value of most retirements.

For those with an extensive history of social security contributions, especially those who started working early, retirement based on points can be a very advantageous choice.

For a long time, this type of retirement was recognized as one of the most beneficial. However, after the implementation of the Pension Reform, achieving the necessary points became a more challenging task.

Thus, the points-based retirement category still exists, however, with some changes that have occurred since the Labor Reform.

How does retirement by points work | 2023?

It's crucial to understand that the introduction of Points-Based Retirement does not preclude traditional retirement options based on length of service or age. It represents an additional alternative, aiming to offer differentiated benefits to insured individuals seeking retirement.

Given the changes brought about by the Pension Reform, it is important to explore how the points system was impacted.

The mechanism is simple: the sum of an individual's age and their contribution period determines the score. However, the required number of points varies, influenced by when the insured person met the requirements, as the Reform brought adjustments to the social security rules.

The fundamental criteria for Points Retirement are outlined as follows:

• Men: A 35-year contribution history is required, reaching the 100-point mark in 2023, with an annual increase of 1 point up to the limit of 105 points.
• Women: Must have 30 years of contributions, reaching 90 points in 2023, and also increasing by 1 point each year until reaching the limit of 100 points.

This dynamic reveals the need to adapt to changes over time, reinforcing the importance of understanding the nuances of the pension system to ensure a safe transition to retirement.

How are points counted for retirement?

Retirement points are calculated by adding the insured's age and contribution period. The minimum points required for retirement increases each year, reaching 105 points for men and 100 points for women.

In 2023, the requirements for retirement by points are as follows:

• Men: 35 years of contribution and 100 points, which is the sum of age and contribution time.
• Women: 30 years of contribution and 90 points.

To calculate points, simply add the insured's age to their contribution period. For example, a man with 35 years of contributions and who turns 60 in 2023 will have 95 points. To retire, he will need to contribute for another 5 years or turn 65.

How are retirement points calculated?

If a man decides to retire at 65 years of age, he will have 105 points and will receive a full benefit, which will be calculated based on the average salary of the last 10 years of contribution, with an increase of 2% for each year of contribution above 20 years.

Here are some examples of how retirement points are counted:

• Man with 35 years of contributions and 60 years of age in 2023: 35 years of contribution + 60 years of age = 95 points.
• Woman with 30 years of contributions and 55 years of age in 2023: 30 years of contribution + 55 years of age = 85 points.
• Man with 35 years of contributions and 65 years of age in 2023: 35 years of contribution + 65 years of age = 100 points.
• Woman with 30 years of contributions and 60 years of age in 2023: 30 years of contribution + 60 years of age = 90 points.

It is important to remember that the score required for retirement based on points increases each year, until it reaches 105 points for men and 100 points for women.

What is the rule for retirement based on points? What is the law?

The Points-Based Retirement regulation represents a transition rule for full retirement within the scope of the General Social Security Regime (RGPS), being instituted by the 2019 pension reform.

The calculation for this modality is derived from the sum of the insured's age and the contribution period, and the benefit amount is determined by the average salary of the last 10 years of contribution.

The legislation that establishes Retirement by Points is Law No. 13,846, dated June 18, 2019, which promotes modifications to Law No. 8,213, of July 24, 1991, which deals with Social Security Benefit Plans.

Regarding the transition rules for retirement based on points, different situations deserve to be highlighted:

• Gathered 96 points (men) or 86 points (women) until 11/12/2019: For those who met the requirements up to 11/12/2019, with a minimum of 35/30 years of contribution, the right to retirement based on points with more favorable calculations is guaranteed.
• Scored 96 points (men) or 86 points (women) between 11/13/2019 and 12/31/2019: If you accumulated 96 or 86 points between November 13, 2019, and December 31, 2019, you can still retire based on points. However, it's important to note that the benefit calculation method has changed due to the Pension Reform.
• Did not collect the necessary points by 12/31/2019: If the insured person did not reach the required points by December 31, 2019, they will be included in the progressive points increase established by the Pension Reform. Starting January 1, 2020, the requirement for retirement based on points will increase by 1 point annually, with limits of 105 points for men and 100 points for women. This gradual change implies a gradual adaptation to the new established criteria.

How many points do you need to retire?

In 2023, the criteria established for obtaining retirement by points outline specific requirements for men and women:

• Men must have a history of 35 years of contributions and reach the 100-point mark, resulting from the sum of their age and contribution time.
• Women, in turn, need 30 years of contributions and to obtain 90 points, derived from the combination of age and contribution time.

It is imperative to note that the essential score for retirement by points experiences an annual increase, culminating in 105 points for men and 100 points for women.

Therefore, in the 2023 scenario, to benefit from points-based retirement, a man needs to accumulate 100 points, while a woman must reach 90 points.

This gradual evolution of requirements highlights the need for ongoing understanding and strategic adjustments for those seeking to plan for retirement.

Check the points table for retirement 2023

Now that you know the transition rule for retirement based on points, see a detailed table with the points required to retire, considering the progression of points each year that was established:

How to calculate points for retirement?

The calculation of points for retirement follows a very simple calculation:

• Add your current age.
• Add up the number of years you have contributed to the INSS.

The result of this sum will give you the score you need to retire on points.

For this sum to be correct, you must know the correct contribution time and, therefore, be able to do your sum correctly.

There are two ways to find out how long you have contributed to the INSS:

• From the INSS website: Access the INSS website and log in with your CPF and platform password gov.br. On the home page, click on the "Social Security Statement (CNIS)" option. The statement will show the insured's contribution history, including the contribution period.
• Through the Meu INSS app: Download the Meu INSS app on your phone or tablet. Open the app and log in with your CPF and platform password. gov.br. On the home page, click on the "Social Security Statement (CNIS)" option. The statement will show the insured's contribution history, including the contribution period.

Additionally, you can request a certificate of your contribution time from the INSS. To do so, simply call the INSS Call Center at 135.

How to get points for retirement?

To earn points toward retirement, you must contribute to the INSS (National Institute of Social Security). Length of contributions is one of the requirements for retirement in Brazil, and each year of contributions is equivalent to one point.

Therefore, to earn retirement points, you must:

• Contribute to the INSS: To contribute to the INSS, you must have a formal job or be self-employed. Formal workers contribute to the INSS through payroll deductions. Self-employed workers can contribute through eSocial or the Social Security Guide (GPS).
• Counting contribution time: Contribution time is calculated from the start date of contributions to the INSS. Contribution time is cumulative, meaning the insured can combine the contribution time from different jobs or activities.
• Tell your age: For each year passed, you also earn a contribution point.

What was retirement based on points like before the reform?

Before the 2019 Social Security reform, retirement based on points was a transitional rule towards full retirement, which was granted to insured individuals who met the following requirements:

• Minimum contribution period: 30 years for women and 35 years for men.
• Minimum age: 60 years for women and 65 years for men.
• Minimum score: 86 points for women and 96 points for men.

The score was calculated by adding the insured's age to the contribution period.

For example, a woman with 30 years of contributions and age 55 in 2018 would have 85 points. To retire, she would need to contribute for another year or turn 60.

The 2019 Social Security reform changed the points-based retirement rule, making it more rigorous.

The minimum points required for retirement increases each year, reaching 105 points for men and 100 points for women. Furthermore, the minimum age for retirement also increases each year, reaching 62 for women and 65 for men.

Is it advantageous to retire on points?

The answer to this question depends on several factors, such as the insured's contribution period, the insured's age, and the amount of benefit they wish to receive.

In general, points-based retirement is an advantageous option for policyholders who have already contributed significantly. In this case, the policyholder can retire with a full benefit, even if they have not reached the minimum age of 62 for women and 65 for men.

However, points-based retirement is also a more stringent option, as it requires the insured to contribute for a longer period. Furthermore, the minimum points required for points-based retirement increases each year, making it more difficult to meet this requirement.

Therefore, before deciding to retire based on points, the insured must carefully analyze their objectives and conditions.

Here are some factors to consider when analyzing whether points-based retirement is advantageous:

• Contribution time: The longer the insured has contributed, the more advantageous the points-based retirement will be.
• Age: The younger the insured is, the more time they will have to accumulate points and reach the minimum score required.
• Benefit value: The value of the retirement benefit based on points is calculated based on the average salary over the last 10 years of contributions. Therefore, the higher the average salary, the higher the benefit amount.

If the insured considers retirement based on points to be a beneficial option, they should begin contributing to the INSS (National Social Security Institute) as soon as possible. This will help them accumulate points and reach the minimum required score more quickly.

How to apply for retirement based on points?

To apply for retirement based on points, the insured must submit the following documents to the INSS:

• Personal identification document (RG, CNH or other official document with photo);
• CPF;
• Marriage or stable union certificate, if applicable;
• Birth certificate of children;
• Work and Social Security Card (CTPS);
• Social security statement (CNIS);
• Documents proving contribution time, such as contribution slips, employment contracts, etc.

The request for retirement based on points can be made through the INSS website, through the Meu INSS app or in person at an INSS agency.

If the request is made through the website or the Meu INSS app, the insured must follow the following steps:

1. Access the Meu INSS website or app.
2. Log in with your CPF and platform password gov.br.
3. Click on the “Retirements and Pensions” option.
4. Click on the “Request retirement” option.
5. Select the “Retirement by points” option.
6. Fill in the requested data.
7. Attach the necessary documents.
8. Click “Send”.

If the request is made in person at an INSS agency, the insured must go to an INSS agency and present the necessary documents to the attendant.

The INSS (National Institute of Social Security) will review the request and issue a decision. If the request is approved, the insured will receive the benefit from the date the request is submitted.

Frequently asked questions

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