After all, can I really choose to receive the FGTS in advance? How it works?

Find out how FGTS advance payments work and assess whether it is the best option for your personal finances. Discover the advantages and disadvantages of this alternative.

The coronavirus pandemic has still affected the finances of many Brazilians today, leading some to consider the option of advancing their Severance Indemnity Fund (FGTS) deposits as a way to get money immediately and alleviate financial worries.

But, after all, what is this anticipation of the Guarantee Fund and how does it work? We have gathered the main information in the following lines. So, keep reading.

Discover the details of early FGTS birthday withdrawal and how to plan its use wisely. (Credit: @jeanedeoliveirafotografia /

What is FGTS anticipation?

FGTS advance payment is, essentially, a way of obtaining a loan from yourself. In other words, it is an early withdrawal that allows workers to access part of the Guarantee Fund balance before the established deadline.

Created as an emergency measure during crises, the FGTS advance acts as a type of emergency credit, similar to a personal loan, and is offered by several financial institutions.

Don’t miss this opportunity: 4 steps to advance your FGTS through Nubank; secure extra money ahead of time!

FGTS birthday withdrawal: learn about the modality

In addition to the withdrawal due to unfair dismissal, in 2019 the federal government instituted another method of withdrawing resources from the FGTS, known as the anniversary withdrawal.

In this modality, the worker has the opportunity to withdraw a percentage of the FGTS balance annually, in the month of his birthday.

How to anticipate the birthday withdrawal?

Anticipating the birthday withdrawal is a possibility offered by financial institutions, allowing the worker to receive in advance the amount they would be entitled to withdraw in their birthday month.

However, it is important to note that institutions generally apply interest rates in this process, and these rates may vary depending on the institution chosen.

Therefore, it is crucial to properly plan ahead to avoid unpleasant surprises in the future.

Is it advantageous to advance the withdrawal of FGTS?

Taking some precautions before making the decision to anticipate withdrawing from the Guarantee Fund is essential, taking into account the interest rates on the loan and the future financial needs that the total FGTS balance could cover.

Anticipation can be beneficial for those facing emergency situations, such as unexpected medical expenses. However, it is essential to consider the long-term financial implications of this early withdrawal before making a decision.

When is it advantageous to opt for advance payment?

The advantage of opting to advance the FGTS varies according to each individual’s personal financial situation.

It can be a sensible choice in emergency situations when immediate access to funds is essential. However, it is crucial to consider the future financial implications of this early withdrawal before making any definitive decisions.

More about FGTS: Changed your mind? See how to cancel your FGTS birthday withdrawal and why you should do it

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