How the New IOF Affects the Precautionary Market

The government's attempt to close the tax break of VBGLs will be a backbone for the private precautionary market. On the fifth, the government announced a 5% IOF discount on monthly contributions above R$50 billion made on VGBL-type plans. Almost R$ 240 billion were invested in January 2024 to March 2025. VGBLs received around 90% of the total, and market estimates indicate that between 70% and 80% of the applications were higher than R$ 50,000 …