“Investors around the world have been cheering Brazilian stocks on hopes the new presidential administration can pass push through major changes to the country’s pension system this year,” reports CNBC.
Markets observers were optimistic that Bolsonaro’s economic cabinet, led by former investment banker Guedes, will push through reforms needed to cut down the country’s 180 billion reais, or $47.31 billion, deficit and restore confidence and growth to the ailing economy.
The country’s pension system is in dire need of reform, including potential increases to retirement ages. Many Brazilians are retired by their mid-50s.
“Bolsonaro signaled last month the minimum retirement age for men and women could be raised to 62 and 57, respectively. This would be a weaker proposal than the one raised by former President Michel Temer, which would have hiked the retirement age to 65 for men and 62 for women. The average retirement age in Brazil is around 55,” according to CNBC.
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