Brazil plans higher MEI pension contributions and age adjustments for retirement

Demographic shifts such as longer life expectancy and fewer workers are straining Brazil's pension system. Experts note that the public system relies on current workers to fund retirees, a balance that is eroding.

A proposal from policy researchers recommends raising the Micro‑empreendedor Individual (MEI) contribution from the current 5% of the minimum wage to 11% to improve sustainability. The same study suggests that the statutory retirement age should no longer be a fixed number; instead it would be automatically adjusted according to life‑expectancy figures published by the IBGE, potentially reaching 67 years in the future. Additional ideas include bonuses for mothers, special rules for hazardous jobs, and a mixed system that combines public benefits with individual capital accounts.

Financial advisers also stress that individuals should diversify their retirement savings, using fixed‑income assets, government bonds such as Tesouro IPCA+, and private pension plans, rather than relying solely on the public system.