Brazil's complementary pension system urged to expand amid aging population

Brazil's complementary pension sector is at a pivotal moment as the country confronts rapid demographic aging and profound changes in the labour market. Closed‑group pension funds, built over decades with strong governance and professional management, are seen as a solid foundation, but their participant base is skewed toward ages 35‑54, which hold 56.3% of members, while those under 34 account for only 27.8%. Experts stress the need to promote early‑career enrollment, financial education and products suited to more dynamic work paths.

Following the 2019 pension reform, workers who were close to retirement when the new rules took effect may be required to pay a "pedágio" – an additional contribution period equal to the time they were short of the new eligibility threshold, often 100% of the missing years. This extra contribution aims to align benefits with the reformed system but adds a financial burden for many near‑retirees.