In much of the world, workers would find it hard to imagine being able to retire at 55, earning 70 percent of their final salary for the rest of their lives.
But in Brazil, that has been the norm for decades, which helps explain the abundance of silver-haired joggers along Copacabana Beach in Rio de Janeiro at 11 a.m. on a recent weekday.
It also accounts for about a third of all government spending in Brazil, and contributed to a record budget deficit in 2016.
Analysts and politicians across the political spectrum have long recognized that the pension system is unsustainable and a major factor in the country’s continuing economic struggles.
“Brazil has one of the most generous systems in the world,” said Chris Garman, managing director of the Americas for the Eurasia Group, a political risk consultancy. But without a pension overhaul, he added, “Brazil is heading for insolvency and debt crisis.”
A jarring reminder of that came last month when Standard & Poor’s downgraded the credit rating of Brazil, Latin America’s largest economy, sending it even further into so-called junk territory, or below investment grade. The downgrade came amid dimming hopes that Brazil’s Congress would reform the country’s social security system during this election year.
Now it’s tear gas and protests. Why?
The new “happy mixed race” people do not produce enough wealth to support the life that the more white/europanics people once took for normal.
The government is 250 billion in the red. They need the retirement changes or they face hyperinflation and devaluation. “that’s facist” screamed the crowds. The truth is its the reality of a dysgenic trend in Brazil that has left more and more negroid and mixed negroid people demanding the same lifestyle as the hard working whites in Sao Paolo.
They consider not having a cushy retirement at 55 years old “a retirement without dignity” yet in America it’s already 67! Maybe they’ve had things too good and easy for too long. They cannot grasp there is no money to pay for it.