INSUBCONTINENT EXCLUSIVE:
Treasury projects a deficit of R$326.2 billion ($63.3 billion), escalating to R$25.5 trillion ($4.95 trillion) by 2100 if no reforms are
implemented.This alarming trend is driven by increasing informality, a sluggish formal job market, and an aging population.Since 2016,
unregistered workers have surged by 26.7%, totaling 13.5 million last year
This rise in gig economy jobs contributes to the pension strain.Meanwhile, formal employment grew merely 3% from 2022 to 2023, a slowdown
million in 2010 to 22.2 million in 2022.This group now makes up 10.9% of the population, further heightening pension demands as
(Photo Internet reproduction)Economist Ecio Costa suggests attracting self-employed and informal workers to bolster the system.He proposes
reforms modeled on private pensions with funded schemes, noting such structures have enhanced sustainability in other nations.Costa also
Pension Shortfall Calls for ActionStill, his office has not responded to inquiries about the projections or planned reforms.Municipalities
pension framework.Download the report here.
