Brazil’s new president-elect, Jair Bolsonaro, has his work cut out for him once Michel Temer, the nation’s current head of state, leaves office in January, and pension reform is among his highest priorities.
Bolsonaro, a Social Liberal Party member, wants to privatize the pension system, which would put everything into accounts where people would manage their own retirement savings. Pensioners can currently retire at an average age of 54 to get their full benefits.
Paulo Guedes, the incoming president’s economic advisor and possible economy minister, said Sunday that the pension system is one of the new administration’s top priorities.
The issue at hand is that Temer, now a lame duck, promised reforms to the debt-laden retirement system’s age eligibly for almost a year. His proposed changes, which were to raise the retirement and social security collection ages, impose contribution minimums, and require 40 years of service to obtain full benefits, met protests and delays for various reasons. Following issue-related conflict that led to military intervention, the president eventually gave up and left the problem to his successor.
It is not yet known when, or how soon, a pension revamp could occur.