Reform of the Brazilian Social Security System: simulations and impacts on differences between the sexes

Abstract

Today, average retirement benefits in Brazil are lower for women than for men, but women are the main pension receivers (usually due to the death of their husbands). Women also make up the majority of the beneficiaries of the Brazilian social Security. These facts are certainly reflections of women’s earnings while working (they usually work less and earn less on the labor market). At the same time that they receive lower average benefits, older women are more economically dependent on social security benefits and on the earnings of other members of their families. The present article consists of an investigation into possible changes in the rules on eligibility for receiving retirement and pension benefits due to death. Such changes are frequently mentioned by specialists as necessary in order to balance the Brazilian Social Security budget. To this end, the author discusses how changes may affect the inequalities in income between the sexes in old age and thus bring in a further important dimension in evaluating proposals for reforming the system.