Pensions to Kill For
In Brazil, pensions are so generous that people are ready to kill to get one! The current government is desperate to reform the pay-as-you-go pension system, which is a drag on public resources. Brazilians do not see it that way, and they have been rioting in the thousands to preserve their perks. Too many workers choose to retire in their 50s with full benefits, receiving too much money for too little contribution. The retirement check is usually equal to the last salary, and many people can collect multiple pensions. Because the Brazilian population is aging and no longer breeding (the birth rate is under the replacement level) the pension system is collapsing under the weight of its own largess. In 2017, this geriatric generosity cost about 10% of GDP and the national debt is ballooning at 98% of GDP. The State of Rio de Janeiro is a case in point. It is broke, bankrupted by its pension obligations. It supports more ...