Coronavirus

Covid-19 pandemic makes demand for private pensions grow

Covid-19 pandemic makes demand for private pensions grow
Photo: Stmool/Shutterstock

The amount invested in the private pension market grew 7 percent in December of last year compared with the same period of 2019, according to data from the National Federation of Private Pensions and Life Insurance (Fenaprevi).

The data shows that the crisis caused by the Covid-19 pandemic brought insecurity to Brazilians and caused many of them to worry about the future. 

“People started to think more about the pandemic and started to save money. A lot of people are learning the culture of saving now,” pointed out Jorge Prado, a finance professor of the FAE university center.

Moreover, leaving money in savings accounts — the most common investment among Brazilians — is no longer yielding as much as before. A few years ago, savings generated interest of 8 percent a year, but this rate has dropped to roughly 2 percent. This has led many Brazilians to put their money into other investments.