IMF Working Papers

Fiscal Challenges of Population Aging in Brazil

By Alfredo Cuevas, Izabela Karpowicz, Carlos Mulas-Granados, Mauricio Soto

April 26, 2017

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Alfredo Cuevas, Izabela Karpowicz, Carlos Mulas-Granados, and Mauricio Soto. Fiscal Challenges of Population Aging in Brazil, (USA: International Monetary Fund, 2017) accessed November 8, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Aging, Expenditure, Health, Health care spending, Labor, Pension spending, Pensions, Population and demographics, Retirement

Keywords: Aging, Benefits indexation formula, Central America, Early retirement, Europe, Fiscal consolidation, Global, Government spending, Health, Health care spending, Health expenditure, Health outcome, IMF staff estimate, Indexation formula, Internal rate of return, Labor force, Life expectancy, Minimum wage, Old-age dependency ratio, Pension expenditure, Pension spending, Pension system, Pension system consist, Pensions, Regime de Previdência Complementar, WP

Publication Details

  • Pages:

    29

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/099

  • Stock No:

    WPIEA2017099

  • ISBN:

    9781475595550

  • ISSN:

    1018-5941

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