FGTS withdrawal: Check out all the opportunities to withdraw your guarantee fund

The FGTS withdrawal is an excellent opportunity for those who need money, whether to eliminate financial debts or to carry out a plan.

For this reason, it is important to understand when it is possible to withdraw funds from the account, whether the total or partial amount.

This is because we know that conventional FGTS withdrawals only occur on very specific occasions, but there are currently interesting alternatives.

And that’s exactly what we’re going to talk about today, so don’t miss it!

What is FGTS?

Before we talk about FGTS withdrawals, it is important to understand what the Severance Pay Guarantee Fund is.

The FGTS is a type of benefit provided for in the rules of the CLT regime, and in practice it works as a reserve for the worker.

This reserve is intended to provide greater financial stability in the event of unexpected job loss.

And by “unexpected manner” we refer to dismissals without just cause decided by the employer.

The deposit of this reserve must be made into the worker's FGTS account monthly, in the amount corresponding to 8% of the salary.

There are two main ways to withdraw this balance: through termination withdrawal or anniversary withdrawal, which we will understand in detail later on how they work.

When can I withdraw my FGTS?

We previously explained that there are two main ways to withdraw FGTS, the most common being the termination withdrawal.

In withdrawal-termination It is possible to withdraw the total balance from the account immediately after the termination of the employment contract.

However, in this modality, withdrawal is only permitted in the event of dismissal without just cause, so that if there is a request for resignation or an obvious reason for termination of the contract, the balance is blocked.

In this case, it will only be possible to withdraw the amounts in the event of specific releases by the Government, or on the following occasions:

Property purchase: the FGTS balance can be used to pay off part of the real estate financing;

Retirement: Upon obtaining retirement from the INSS, citizens have the possibility of withdrawing amounts from their FGTS account.

The last option for withdrawing FGTS is birthday withdrawal, which allows the withdrawal of 30% of the total value of the account once a year, in the month of the holder's birthday.

For this modality, you must sign up in the app, remembering that when you sign up for the anniversary withdrawal, you automatically give up the termination withdrawal.

What is the best type of FGTS withdrawal: termination or anniversary?

Previously, we saw the main alternatives for making FGTS withdrawals, and it was possible to understand that there are two main modalities: termination withdrawal and anniversary withdrawal.

And, the difference between both modalities is that in the case of withdrawal-termination you can withdraw everything at once, but you need to wait for the termination of the contract, and this must comply with the rules.

In the case of the anniversary withdrawal, you do not need to wait, as you can withdraw part of the amount every year, but this withdrawal occurs gradually.

Furthermore, it is important to highlight that when you join one modality you automatically give up the other.

This means that when you sign up for the anniversary withdrawal, you cannot withdraw all the amounts from the account in the event of termination of employment.

So, both options have advantages and disadvantages, so it's important that you decide what makes the most sense for your life.

Do you prioritize stability or the ability to withdraw funds frequently?

Do you prefer to set aside money for an emergency or would you rather not run the risk of having your entire balance frozen in the event of a resignation?

There are many things to think about, so it’s worth knowing both options in detail in order to make the best decision!