OECD Policy Memo, April 2017
Brazil’s pension system is an outlier compared to pension systems in OECD countries. All public pension schemes in OECD countries include a minimum retirement age. The Brazilian system pays high replacement rates – pensions relative to working age incomes – and it does so at a much lower age. While life expectancy in Brazil is a little below the OECD average, this gap does not justify a much lower retirement age. As it stands, the pension system is financially unsustainable. An in-depth reform is necessary and inevitable.