Brazil Congress passes landmark pension reform

Brazil’s Congress has approved an overhaul to its pension system, capping years of stalled efforts to rein in unsustainable government spending on retirement. The Senate voted 60-19 Tuesday to approve changes for civil servants and private-sector workers. The most meaningful change sets a minimum retirement age of 65 for men and 62 for women. That’s…

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Brazil Congress passes landmark pension reform

Brazil’s Congress has approved an overhaul to its pension system, capping years of stalled efforts to rein in unsustainable government spending on retirement.

The Senate voted 60-19 Tuesday to approve changes for civil servants and private-sector workers.

The most meaningful change sets a minimum retirement age of 65 for men and 62 for women. That’s up from averages of 56 and 53, according to the Organization for Economic Co-operation and Development.

The overhaul takes aim at a swelling deficit in Brazil’s pension system, which a research firm says accounts for some 40% of total federal spending.

That load has grown along with life expectancy, and an analyst says Brazil will save about $190 billion over the next decade as a result of the reform.

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