PGBL vs VGBL Calculator (Brazil)

The comparator runs both PGBL and VGBL scenarios in parallel, accounting for the 12% deduction cap, the regressive tax table, and refund reinvestment. To get the most out of it:

1. Enter your monthly taxable gross income. Not your take-home pay — the figure that goes on your tax return. The calculator uses it to set your marginal IR rate and to compute the 12 × that × 0.12 PGBL deduction cap.
2. Set your monthly contribution. The total amount you plan to put into private pension every month. The calculator handles the split: up to 12% of income flows into PGBL under the PGBL scenario, and the excess goes into a VGBL sidecar to avoid double taxation.
3. Pick your horizon. Years until withdrawal. From 10 years on, the regressive table already hits 10% — the level where PGBL typically wins. On short horizons, VGBL is usually better.
4. Confirm your filing method. Complete unlocks the PGBL deduction; Simplified erases the benefit entirely and the calculator forces a VGBL recommendation.
5. Decide on refund reinvestment. Keeping it on is the honest comparison — otherwise the PGBL advantage just becomes lifestyle spending.
6. Pick a withdrawal mode. Lump sum versus 15-year annuity changes the effective IR: in the annuity, capital keeps aging, so more of it lands in lower brackets.

The chart plots year-by-year net wealth under each strategy. The dashed vertical line marks the year PGBL overtakes VGBL in your scenario (if it does).

What PGBL is and when it works

PGBL (Plano Gerador de Benefício Livre) is a Brazilian private-pension product with a specific tax regime: up to 12% of your annual taxable gross income contributed is deductible from IR, producing a refund. The trade-off is that on withdrawal, IR is paid on the full balance — contributions plus growth. So PGBL only pays off for filers using the Complete method who stay within the 12% cap and invest long enough for the regressive table to reach 10%.

What VGBL is and when it wins

VGBL (Vida Gerador de Benefício Livre) has no deduction and no cap. In exchange, withdrawal IR applies only to the growth portion, not to the contributed capital. It is the natural choice for Simplified filers, for contributions above the 12% cap, and for short withdrawal horizons.

Regressive versus progressive table

The regressive (definitive) table starts at 35% (under-2-year withdrawals) and falls 5 points every 2 years until stabilizing at 10% after 10 years — applied per contribution (FIFO), not on the balance. The progressive table uses normal monthly IR brackets (0% to 27.5%) and can be offset on the annual return. For long-horizon retirement money, the regressive table almost always wins.

Reinvesting the refund: the detail that changes everything

PGBL's mathematical edge exists mostly because the annual refund can be reinvested and compounded for decades. If you spend the refund each year, the effect vanishes and PGBL underperforms VGBL in most scenarios. The calculator turns reinvestment on by default — it's the only honest comparison.

Combining PGBL and VGBL

You don't have to pick one. High earners who contribute above 12% of annual income should split: put exactly 12% into PGBL to capture the full deduction, and route everything above that into VGBL. That captures the tax benefit without falling into the double-taxation trap on the over-cap portion.