Less than eight years after the last pension reform, the Brazilian social security system is again showing growing deficits. The contributions collected are insufficient to cover the payment of benefits, retirements, and pensions, which has forced the government to use Treasury resources to cover the deficit.
In 2025, the National Treasury needed to release R$ 320 billion to honor INSS commitments. Additionally, R$ 62 billion was needed for public servants' pensions and another R$ 53 billion for military pensions, totaling a significant amount of public resources destined for the sector.
INSS expenses currently represent 8% of Brazil's Gross Domestic Product. The scenario is even more concerning when considering population aging, a projection that indicates growth of this percentage to over 17% by the end of the century, significantly worsening the country's fiscal situation.
The article highlights the need for a new pension reform that is lasting, suggesting that changes need to be structural enough to address the problem definitively and not just temporarily.
