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Contributions to Private Pension Drop 11.7% in 2025, While Withdrawals Increase. Discover the Impacts and Risks for Investors.
Contributions to Private Pension Plummet and Reveal New Market Scenario
Contributions to private pension fell 11.7% between January and July 2025, according to a report released by the National Federation of Private Pension and Life (Fenaprevi) this Monday (22).
During the period, investors contributed R$ 100.5 billion, a figure well below the R$ 113.8 billion recorded in 2024.
Meanwhile, withdrawals advanced 15.3%, reaching R$ 88.9 billion.
This movement reduced net inflow to R$ 11.6 billion, at a time when the sector manages an impressive R$ 1.7 trillion in assets, equivalent to 13.7% of Brazil’s GDP.
VGBL Continues to Dominate the Market
Despite the drop in contributions, the VGBL (Vida Gerador de Benefício Livre) remains a favorite among Brazilians.
Of the more than 13.6 million active plans, 8.5 million are VGBL, accounting for 63% of the total.
The PGBL (Plano Gerador de Benefício Livre) has 3.1 million contracts (23%), while Traditional plans represent just over 2 million.
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In total, 11.2 million people have private pensions in Brazil, with the majority in individual plans (8.9 million), versus 2.3 million in group plans.
Revenue Shows Concentration in VGBL
The concentration in VGBL is also reflected in revenue.
Of the R$ 100.5 billion contributed to the sector by July, 92% (R$ 92.1 billion) was allocated to this type of plan.
Meanwhile, PGBL represented 7% (R$ 6.7 billion), and Traditional plans only 2% (R$ 1.6 billion).
This preference occurs because VGBL is seen as more flexible since it does not require a full declaration on Income Tax and offers greater freedom for withdrawals, attracting different investor profiles.
Why Did Contributions Fall and Withdrawals Increase?
The drop in private pension contributions may be related to broader economic factors.
With inflation pressuring family budgets and instability in financial markets, many Brazilians opted to withdraw their investments to deal with immediate expenses.
At the same time, the search for more profitable alternatives in fixed income and Treasury Direct, driven by high-interest rates, contributed to the decline in contributions.
Furthermore, experts highlight that the increase in withdrawals is common during periods of uncertainty when investors prefer quick liquidity over long-term commitments.
Federal Government Monitors Sector Evolution
Although the Fenaprevi report does not bring direct measures from the Federal Government, the performance of private pensions often influences discussions about the social security system as a whole.
This is because the accumulation of sector assets – 13.7% of GDP – shows its relevance as a complementary alternative to social security.
Experts assert that monitoring this scenario is essential to assess the sustainability of the system and Brazilian investors’ confidence in the long term.
What to Expect Moving Forward?
As the second half of the year begins, the market awaits to see if contributions will react to possible cuts in the Selic rate.
If interest rates decline, the tendency is that investors will seek private pensions again as a means of diversification and retirement planning.
On the other hand, if the economy remains unstable, withdrawals may continue to be high, putting pressure on the sector’s net inflow.
In any case, private pensions remain one of the most important long-term savings instruments in Brazil, even in light of the 11.7% drop in contributions in 2025.
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