Author: Cuevas Alfredo, Karpowicz Izabela, Mulas-Granados Carlos, and Soto Mauricio
In recent decades, population has been aging fast in Brazil while old age pensions and healthrelated
spending have increased. As the population ages, the spending trend threaten to reach
unsustainable levels absent reforms. Increasing the retirement age is key, but by itself will
not provide sufficient savings to close the pension system financing gap, and reforms
reducing replacement rates are necessary. In the area of health, there is scope for improving
expenditure efficiency by strengthening outpatient care and regional networks, and
developing clinical guidelines for cost-effective treatments and drugs. Reforms are urgent, so
that they can be gradual.
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