Brazil’s Pension Overhaul Is Just a Start
The legislation will help the country avoid bankruptcy, but it won’t spark growth.
A woman walks her dog in the Copacabana neighborhood of Rio de Janeiro.
Photographer: Sergio Moraes/Reuters
It took three presidents, four finance ministers, and countless setbacks, but Brazil finally completed an overhaul of its pension system—one of the world’s most generous and a perennial drain on government finances. The bill, which is at the core of President Jair Bolsonaro’s economic agenda, was approved by the Senate on Oct. 23 after months of debates.
Getting the legislation passed is an undeniable achievement for Bolsonaro, a firebrand best known for controversial statements on everything from climate change to gender equality who was elected in a landslide last year. The pension revamp—which sets a minimum retirement age and trims benefits—is widely regarded by economists as a must-do to keep Brazil’s fiscal accounts from deteriorating further.