Is the pension cushion ready for an emergency? Experts leave list of minimum charges

Unless there is a small economic miracle, or a major twist in the rules, in a decade from now it will be necessary to activate the Social Security Financial Stabilization Fund, the so-called pension cushion, to start covering the system’s deficits (because the discounts will not be enough to cover expenses). This cushion has been growing at a good pace (faster than pension expenses), overall it has recorded good returns since its creation, but it needs to be subject to several adjustments to be ready to take action when the time comes. H’. Economists Nazaré da Costa Cabral and Noémia Goulart, both from the Public Finance Council (CFP), prepared a study on this topic in which they leave a detailed list of recommendations, starting with the clarification of the social benefits in which the money could come to to be used.

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