Brazil 2011

Brazil’s retirement income system comprises a pay-as-you-go social security system with higher replacement rates for lower income earners; and voluntary occupational corporate and individual pension plans which may be offered by insurance companies or employers.

The following table shows Brazil’s position when compared to the 15 other countries and some of the indicators that either scored relatively well or poorly.

The overall index value for the Brazilian system could be increased by:

• introducing a minimum access age so that the benefits are preserved for retirement purposes
• increasing the level of coverage of employees in occupational pension schemes thereby increasing the level of contributions and assets
• introducing a minimum level of mandatory contributions
• increasing the state pension age over time
• introducing arrangements to protect the pension interests of both parties in a divorce
• enabling individuals to retire gradually whilst receiving a part pension

The Brazilian index fell slightly from 59.8 in 2010 to 58.4 in 2011 due to a decline in the household saving rate and a small fall in the sustainability sub-index related to several indicators.