Fiscal Challenges of Population Aging in Brazil

30 Pages Posted: 12 May 2017

See all articles by Alfredo Cuevas

Alfredo Cuevas

International Monetary Fund (IMF)

Izabela Karpowicz

International Monetary Fund (IMF)

Carlos Mulas-Granados

Government of the Kingdom of Spain - Economic Bureau of the President

Mauricio Soto

International Monetary Fund (IMF)

Date Written: April 2017

Abstract

In recent decades, population has been aging fast in Brazil while old age pensions and health related 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: Brazil, Pensions, Government expenditures and health, Aging, Western Hemisphere, Health, fiscal consolidation, Social Security and Public Pensions, Demographic Trends and Forecasts

JEL Classification: H51, H55, J11, N36

Suggested Citation

Cuevas, Alfredo and Karpowicz, Izabela and Mulas-Granados, Carlos and Soto, Mauricio, Fiscal Challenges of Population Aging in Brazil (April 2017). IMF Working Paper No. 17/99, Available at SSRN: https://ssrn.com/abstract=2967444

Alfredo Cuevas (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Izabela Karpowicz

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Carlos Mulas-Granados

Government of the Kingdom of Spain - Economic Bureau of the President ( email )

28071 Madrid
Spain

Mauricio Soto

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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