Retirement investing in solid companies on the Brazilian stock market versus retirement through the INSS (Brazilian Social Security Institute): a comparative analysis of historical returns from 1994 to 2023
Retirement investing in solid companies on the Brazilian stock market versus retirement through the INSS (Brazilian Social Security Institute): a comparative analysis of historical returns from 1994 to 2023
DOI:
https://doi.org/10.51473/rcmos.v1i2.2025.1814Keywords:
Stock Market. Pension Planning. Compound Interest. Investment Analysis. Personal Financial Planning.Abstract
This study conducts a thorough comparative analysis between wealth accumulation for retirement through monthly investments in a portfolio of stocks from leading Brazilian companies and the public pension scheme managed by the Brazilian Social Security Institute (INSS). The analysis covers three decades (1994-2023), a period marked by significant macroeconomic instability and profound transformations in the Brazilian capital market. The methodology employed backtesting techniques with full reinvestment of dividends and earnings, considering a constant monthly investment of R$ 500.00. The results demonstrate an extraordinary disparity: the stock portfolio reached a final patrimony of approximately R$ 18.5 million, generating a potential monthly passive income exceeding R$ 90,000.00, while the average INSS benefit was limited to a minimum wage. The research concludes that, although it involves risks, the buy-and-hold stock investment strategy presents itself as a viable and potentially superior alternative for long-term retirement planning, highlighting the critical dependency on a public system under demographic and fiscal pressure.
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