Treasury Secretary: Brazil will need several pension reforms over time.
Rogério Ceron says that the increase in life expectancy and the aging population make constant adjustments to pension rules inevitable.
247 - The National Treasury Secretary, Rogério Ceron, stated this Monday (24) that Brazil will need to undergo several pension reforms over time to guarantee the sustainability of the system. In an interview on the program Macro in Focus, from ExameCeron highlighted that the increase in life expectancy and the aging population make adjustments to pension rules inevitable.
"Any serious professional who deals with public finances in Brazil will tell you that, at some point, we will have to go through several pension reforms over time. That is irrefutable," the secretary stated.
Demographic pressure and sustainability - Ceron explained that the combination of a longer-living population and a smaller contributor base generates increasing pressure on the pension system. "These two factors – life expectancy and the demographic issue – create pressure, and the conditions need to be updated from time to time. The country should treat this issue with both naturalness and seriousness," he said.
The secretary also warned about the growth of social security spending, which has been increasing its share of the federal budget. "The dynamics of social security in Brazil are a problem that has been going on for decades; it has been increasing its share of the budget. This is the case all over the world: the pressure on social security, due to demographic issues, is a constant pressure," he stated.
