In an event in Rio de Janeiro, minister presented data that prove the need for changes in the rules of retirement
Finance Minister Henrique Meirelles said on Monday (10) that pension reform will not hurt lower-income workers. In a seminar promoted by the newspaper O Globo to discuss the subject, Meirelles explained that the current rules benefit those who have higher income and can stay longer in the same job.
According to the minister, one of the intentions of the changes proposed by the government is to correct these distortions. "Today what is in the Constitution is the interpretation that it is possible to retire with 65 years of age [for men] or 35 years of contribution. Well, what happens is that lower-income workers enter and leave the labor market and can not reach 35 years of contribution before reaching the age of 65. Those who retire early in Brazil are those who have a higher income level, "he explained.
Meirelles also said that public spending on Brazilian pensions equals 13% of Gross Domestic Product (GDP). This figure is higher than the average for emerging countries and similar to that of countries such as France and Germany, with an older population.
"It is absolutely imperative that we do the Brazilian pension reform. It is not a matter of opinion, reform is a necessity, if it is not done, it will be unsustainable," he said.
Another data presented showed the growth of the deficit in Social Security, which can reach R $ 180 billion this year, if taken into account social security expenses.
Finally, Meirelles stressed that it is important to carry out the reform "on time" and avoid damages such as those that occurred in Portugal and Greece. "We are discussing the reform on time, before breaking. We can not postpone, if not, the solution up front will be much worse. "
Source: Portal Brasil, with information from the Ministry of Finance