Fiscal Challenges of Population Aging in Brazil

Alfredo Cuevas, Izabela Karpowicz, Carlos Mulas-Granados and Mauricio Soto ()

No 2017/099, IMF Working Papers from International Monetary Fund

Abstract: In recent decades, population has been aging fast in Brazil while old age pensions and healthrelated spending have increased. As the population ages, the spending trend threaten to reach unsustainable levels absent reforms. Increasing the retirement age is key, but by itself will not provide sufficient savings to close the pension system financing gap, and reforms reducing replacement rates are necessary. In the area of health, there is scope for improving expenditure efficiency by strengthening outpatient care and regional networks, and developing clinical guidelines for cost-effective treatments and drugs. Reforms are urgent, so that they can be gradual.

Keywords: WP; minimum wage; labor force; life expectancy; government spending; Pensions; health; aging; fiscal consolidation; pension expenditure; early retirement; regime de Previdência Complementar; benefits indexation formula; pension system; old-age dependency ratio; IMF staff estimate; health expenditure; internal rate of return; health outcome; indexation formula; pension system consist; Pension spending; Health care spending; Central America; Europe; Global (search for similar items in EconPapers)
Pages: 29
Date: 2017-04-26
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Citations: View citations in EconPapers (5)

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