I'm self-employed, which is better for my retirement: MEI or PJ?

Planning your retirement as a freelancer? Compare the advantages and disadvantages of being a MEI or a PJ and make the best decision for your financial future.

When you are self-employed, planning for retirement becomes an interesting challenge. After all, you have control over the reins of your professional life.

But, have you ever stopped to think about the best way to contribute to your retirement? MEI and PJ are two popular options, but which one is best for you?

MEI or PJ for self-employed retirement: understand how each option affects your pension future and choose the best strategy for your situation. (Credit: @jeanedeoliveirafotografia / pronatec.pro.br).

Understanding the MEI in retirement

The Individual Microentrepreneur (MEI) simplifies the life of the self-employed. With it, you pay a reduced contribution to the INSS, equivalent to 5% of the minimum wage.

This already guarantees you social security rights. But what if you want to contribute more? Then things get a little complicated.

You cannot increase this amount as MEI, but you can make an additional contribution as an option.

Now, let’s talk about retiring through MEI. Generally, retirement comes by age. If you want to retire based on contribution time, an adjustment is necessary.

You would have to contribute 15% of your income to INSS, in addition to 5% of MEI, totaling 20% ​​of your salary.

The PJ and retirement

Being a Legal Entity (PJ) has its peculiarities. Contributions are made based on services provided.

You issue a Self-Employed Payment Receipt (RPA), which shows your service and social security contribution.

It is a more flexible path in terms of contributions, allowing adjustments depending on your income.

Self-employed, which retirement should you choose: MEI or PJ?

The choice between MEI and PJ depends on several factors. MEI is attractive for its simplicity and low cost, ideal for those who are starting out or have a more modest income.

Furthermore, MEI promotes social inclusion, giving many people the chance to contribute to social security. The PJ option offers more flexibility.

You can adjust your contributions depending on your income. This can be advantageous for those who have a variable income or want to contribute more to ensure a more robust retirement.

Commonalities and differences in retirement for self-employed people

Both options have their pros and cons. The MEI limits the contribution to the INSS, but simplifies the entrepreneur’s life.

The PJ, on the other hand, requires more management, but allows a pension contribution that is more aligned with its financial reality.

In conclusion, the decision between MEI and PJ for retirement is not simple. It is a personal choice, which must take into account your moment in life, your income expectations and your plans for the future.

The important thing is to start contributing and planning your retirement as soon as possible. So, which path makes the most sense for you?

Also know: 3 ALERTS about INSS retirement: loss of benefit, payment veto and more

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