Sustainability of Social Security: A Case Study of the '85/95 Progressive' Project

Abstract

The aim of this study is to demonstrate that adopting the “85/95 Progressive” project – a change in social security rules that allows for eligibility according to the sum of one’s age and overall contribution period – may have serious consequences for the worsening of social security accounts and the long-term sustainability thereof. We therefore propose to simulate the consequences for the new approved project, and what the impact will be on the sustainability of Brazilian Social Security. The dimension of the Brazilian Social Security system is of the utmost importance, firstly because accounting for Social Security is included in the Federal Government’s primary calculations. Secondly, because of its sheer proportions, reaching around 53 million contributors nationwide.