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Without reform, the Social Security deficit would give R $ 110,000 debt to Brazilian youth

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This means that if the whole pension fund were divided by young people up to 25 years of age, each one should be more than R $ 100 thousand

To prevent the population from paying a heavy bill and facing difficulties, Welfare rules need to be changed. A  study by the National Treasury  estimates that if a reform does not occur, Brazilians will have to accept or pay an unsustainable volume of taxes or give up programs in the areas of Education, Public Safety, Health and road and sanitation investments.

In choosing not to reform, Brazil still makes an option for more economic crises in the future, because it is  always haunted by unemployment, inflation and instability. Without changing the rules, the country can never prioritize what is important for Brazilians and will hardly reduce inequalities.

Deficit

According to the study, without a reform, the actuarial deficit of the public and private sector reaches R $ 9.23 trillion, equivalent to 147% of the Gross Domestic Product (GDP) of 2016. If this value were equally divided by the young people of Brazilians, of up to 25 years, there would be a debt of R $ 110,274.79 for each one, including children who have just been born. 

The actuarial deficit is how much the government needs to have to pay for all future welfare benefits. In this case, the calculation goes until 2060. This type of weighting is important so that the public power can plan its spending and so that the population is not left unattended. Without knowing how much to spend in the coming years, the government would be taken by surprise and would not have the resources to apply for safety, education, health and other public services important to society.

This account, however, can be even greater, if between the actuarial deficit of states, the Federal District and the municipalities. Only the entities of the federation have an invoice of R $ 5.4 trillion. In practice, the Government of Brazil has to find out how to guarantee the payment of R $ 14.62 trillion in benefits, a debt equivalent to 233% of GDP. This means that all the wealth produced by the country in little more than two years would have to be disbursed to pay this bill.

Source: Government of Brazil, with information from the National Treasury