pension it's the act of predicting, with the objective of previously avoiding certain situations or inconveniences that are unwanted for the individual.
From the popular point of view, social security is precaution or caution in relation to something, such as the ability to see in advance or in advance the happening of something.
In the economic and financial sphere, social security has the same meaning: beware. To this end, national institutions and measures were created to help ensure survival of people in situations of disability or old age, such as retirement and pension, for example.
Etymologically, the word "welfare" came from the Latin providential, which means "prediction" or "prevention", which in turn originated from praevenire, a Latin term that literally means "to arrive before", being prae, "before and come, "come over".
Social Security
Social Security is a type of insurance that workers must contribute during the entire period they are working. The main objective of this contribution is to guarantee the continuity of the financial benefit when the worker is retired, as well as in cases of pregnancy, illness or accidents.
The entity responsible for transferring the money to people who do not have financial conditions, for several and different reasons, but who have already contributed to Social Security is the INSS - National Institute of Social Security.
Learn more about the meaning of INSS.
Automatically, employees have the INSS value deducted directly from their payroll. payment, varying according to the salary of each one, and the higher the salary, the higher the discount.
Contribution to Social Security is mandatory for all formal workers, thus ensuring the formation of income that will be allocated to retirees.
private pension
Private Pension or Complementary Pension, unlike Social Security, is a non-mandatory alternative for the worker and of an individual character.
While Social Security is constituted by being a simple sharing system, where everyone must collaborate to be able to generate income for the distribution of benefits among people able to receive it (people of advanced age, disabled, pregnant, etc.), the Private Pension, as its name says, acts as a supplement or savings reserve for each individual.
Private Pension is an extra payment made by the individual to supplement the income received by the INSS, such as also for the realization of some life project, such as paying for their children's university or building a business own.