February 22, 2024

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Retirement with real estate funds: How much can you earn?

Retirement with real estate funds: How much can you earn?

If you follow my column every Friday here UOLYou should know that real estate investment trusts (REITs) have great potential to complement retirement.

In today’s text, I decided to limit this possibility. I’ve done simulations of people who intend to stop working in 5, 10, 20 or 30 years.

Find out below how much retirement income you can earn by investing R$100 per month in real estate funds starting today.

5 years: + 980 BRL per year

By investing R$100 per month in real estate funds, a total of R$8,167 can be accumulated after five years.

This reserve has the potential to earn R$82 per month, which means R$980 is added annually upon retirement.

This and all simulations in this column assume a net income of 1% per month, which is currently common in real estate funds.

The simulations also take into account that in the long run, the stock price of the best manufacturing companies, at least, tends to follow inflation indices. Thus, average income of 1% per month will be real, i.e., after deducting inflation.

This also affects the final accumulation of value. If I apply R$100 per month for 5 years (60 months), I will get R$6000 in the end. But with the expected valuations, it comes to the aforementioned R$8,167.

If you are considering making contributions over R$100, simply calculate the percentage to see what your approximate income would be.

For example, for monthly investments of R$300, the final result (R$980) is multiplied by three, and the value is R$2,940 annually.

10 years: + 2700 BRL per year

Applying R$100 per month in fisheries industries over ten years, according to the conditions of this simulation, you will have accumulated, at the end of the period, approximately R$23 thousand.

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This reserve, with a net return of 1% per month, will allow an annual income of R$2,760 to complete your retirement, equivalent to R$230 per month.

20 years: + 12,000 BRL per year

With monthly contributions over 20 consecutive years, the accumulated reserve at the end of the period will be approximately R$100,000.

By doing this, you will have an annual income of approximately R$12,000, which means an additional R$1,000 per month when you retire.

30 years: + 42 thousand Brazilian riyals

For those who have more time to invest, the results become significantly greater.

In the case of monthly contributions of R$100 over 30 years, the accumulated reserve comes to approximately R$349,000 at the end of the period.

With this amount, an annual income can be obtained, from real estate funds, of R$42 thousand annually, or R$3500 per month.

and inflation?

All simulations are already deductible for inflation. When I say, for example, that you will have an income of 3,500 R$ a month 30 years from now, what I’m saying is that at the end of that period, your income will have purchasing power equal to what you can have today with 3500 Rs.

So, don’t think that you will have that amount per month, but you will have an approximate consumption pattern, equivalent to that of a person earning 3500 BRL per month today.

However, you have to do your part. Update the amount of your monthly contributions to inflation. If, 12 months from now, the price indices are up by 10%, you should start investing not R$100 per month, but R$110.

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Patience is the key

If you look closely at the numbers, you’ll see that when you double the time for contributions, your return at the end of the period is well over 100%.

A person needs to invest for 20 years to increase his pension by R$1,000 per month. It would be natural to think, then, that it would take another 20 years of contributions to generate an income of R$2,000. But they are not.

Continuing the contributions for only another 10 years, the investor will add another 2,500 R$ per month to his income, bringing the total net income to R$ 3,500 per month with FIIs after 30 years.

It is very important to know this so that you do not give up too quickly.


If you have questions about today’s text or about investments in general, send an email to [email protected].

Your question may become the topic of this column in the future.