The rapid process of aging in Brazil: serious challenges for public policies

Abstract

The positive effects of the recent age structure transition (AST) in Brazil can be seen in children’s health services, education and other areas. The higher growth rate estimated for the economically active population in coming decades constitutes a new area of opportunities. The combination of the older segment of the labor force (ages 25 to 64), which is showing high growth, with the junior segment (ages 15 to 24), which is showing very low or even negative growth rates, indicates a trend toward reducing the demographic pressure for new jobs. The training of the future labor force has become an indispensable component for a more just intergenerational, social and economic balance. Due to the age structure transition, new challenges are emerging related to the expansion of the older population. If the present per capita transfer of funds from the government is maintained constant, the difference between revenue and expenses will increase, causing an unsustainable fiscal deficit. The expected crisis brought about by the aging of the population and the current irrational social security system must be urgently discussed in Brazilian society. The best must be made of the opportunities generated by age structure transition in order to prepare to face the new resulting challenges.