2019
DOI: 10.12660/bre.v39n12019.75504
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The collapse of Brazilian Social Security: Macroeconomic impacts of the increase of the minimum age of PEC nº 287/2016 reform

Abstract: This paper presents a simulation of the economic impacts of the increase of the minimum age contained in the Proposal for Constitutional Amendment (PEC) Nº 287/2016. For that, an overlapping generations (OLG) model with 57 generations was built, including the transition rule. The results suggest that not increasing the minimum age for retirement is a very bad choice for society. The fiscal situation becomes unsustainable, and the expansion of social security expenditures, in combination with the reduction of t… Show more

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Cited by 3 publications
(3 citation statements)
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“…Against this background, the federal government has indicated that Brazil’s current expenditure on social security is very high and must be reduced in the long run. The possibilities include increasing the minimum age to retire, reducing benefits and others (Freitas and Paes, 2019; Beltrao and Pinhanez, 2014). Therefore, it is evident that the importance of individual savings is particularly important in the present context.…”
Section: Discussionmentioning
confidence: 99%
See 1 more Smart Citation
“…Against this background, the federal government has indicated that Brazil’s current expenditure on social security is very high and must be reduced in the long run. The possibilities include increasing the minimum age to retire, reducing benefits and others (Freitas and Paes, 2019; Beltrao and Pinhanez, 2014). Therefore, it is evident that the importance of individual savings is particularly important in the present context.…”
Section: Discussionmentioning
confidence: 99%
“…Due to Brazil's economic and demographic changes, especially the extensive discussion about the Brazilian social security system, which tends to increase the minimum age for retirement (Freitas and Paes, 2019), private savings have to receive more attention from society. From a demographic perspective, ageing in Brazil is another important issue as the New evidence from Brazil country needs to be prepared for population-ageing needs (Miranda et al, 2016).…”
Section: Introductionmentioning
confidence: 99%
“…Brazilian elderly statute considers elderly individuals aged 60 or over; however, from 2020 onwards, for social security, elderly Brazilian citizens aged 65 years or over for men and 63 years or over for women will be considered [ 6 ]. Brazil still finds it difficult to establish a balance between the aging of its population and financial cost of this new citizen in terms of health and social security [ 7 ].…”
Section: Introductionmentioning
confidence: 99%