Need for economic recovery
Posted: Wed Feb 19, 2025 9:11 am
The main argument for establishing the need for pension reform is the fact that the deficit (expenses greater than revenue) has been increasing progressively each year.
In 2018, the deficit was 8% compared to the previous year, reaching a deficit of R$290.2 billion in public accounts.
Pension privileges for specific groups, unrecoverable debts of large bankrupt or inactive debtors, and unemployment caused by the recession are some of the factors that influenced the current pension figures, in addition to the growing aging of the population.
Population aging
It is important to understand the dynamics of social security: Workers of working age contribute to social security, and this money is used to maintain the benefits of those who are retired.
The average age of the Brazilian population is starting to bangladesh mobile database increase, as is life expectancy. In a few years, Brazil will go from being a young country to a country with a large number of elderly people. Therefore, over the years, we will have a smaller working population, that is, fewer contributors as the number of retirees grows.
Brazilians retire early
Surprisingly, they retire early compared to other countries. The average retirement age in Brazil is 58 years, and this number drops even further when we analyze retirement by contribution.
Arguments against pension reform
Impact of social security on the poor population
The poorest population with the lowest salary range is the one that has the greatest difficulty in maintaining formal employment for longer periods, so it would suffer a greater impact with the minimum age being the only option.
Do not charge large debtors
A very strong argument from those who are against the reform is that private companies that are the biggest debtors to social security are not being charged.
The companies' debts amount to around R$450 billion, and according to the National Treasury Attorney's Office, only R$175 billion can be recovered. Most of the companies with debts are bankrupt, in judicial recovery or inactive.
In 2018, the deficit was 8% compared to the previous year, reaching a deficit of R$290.2 billion in public accounts.
Pension privileges for specific groups, unrecoverable debts of large bankrupt or inactive debtors, and unemployment caused by the recession are some of the factors that influenced the current pension figures, in addition to the growing aging of the population.
Population aging
It is important to understand the dynamics of social security: Workers of working age contribute to social security, and this money is used to maintain the benefits of those who are retired.
The average age of the Brazilian population is starting to bangladesh mobile database increase, as is life expectancy. In a few years, Brazil will go from being a young country to a country with a large number of elderly people. Therefore, over the years, we will have a smaller working population, that is, fewer contributors as the number of retirees grows.
Brazilians retire early
Surprisingly, they retire early compared to other countries. The average retirement age in Brazil is 58 years, and this number drops even further when we analyze retirement by contribution.
Arguments against pension reform
Impact of social security on the poor population
The poorest population with the lowest salary range is the one that has the greatest difficulty in maintaining formal employment for longer periods, so it would suffer a greater impact with the minimum age being the only option.
Do not charge large debtors
A very strong argument from those who are against the reform is that private companies that are the biggest debtors to social security are not being charged.
The companies' debts amount to around R$450 billion, and according to the National Treasury Attorney's Office, only R$175 billion can be recovered. Most of the companies with debts are bankrupt, in judicial recovery or inactive.