Brazil's Congress has approved an overhaul to its pension system, capping years of stalled efforts to rein in unsustainable government spending on retirement.
The Senate voted 60-19 Tuesday to approve changes for civil servants and private-sector workers.
The most meaningful change sets a minimum retirement age of 65 for men and 62 for women. That's up from averages of 56 and 53, according to the Organization for Economic Co-operation and Development.
Brazil's Senate President Davi Alcolumbre, right, speaks into the ear of lawmaker Eduardo Bolsonaro, son of the nation's president, during the final voting session on pension reform at the Senate in Brasilia, Brazil, Tuesday, Oct. 22, 2019. The most meaningful impact of the reform is the establishment of a minimum age for retirement at 65 for men and 62 for women. (AP PhotoEraldo Peres)
The overhaul takes aim at a swelling deficit in Brazil's pension system, which a research firm says accounts for some 40% of total federal spending.
That load has grown along with life expectancy, and an analyst says Brazil will save about $190 billion over the next decade as a result of the reform.
Brazilian Senator Flavio Bolsonaro, son of the nation's president, attends the final voting session on pension reform at the Senate in Brasilia, Brazil, Tuesday, Oct. 22, 2019. The most meaningful impact of the reform is the establishment of a minimum age for retirement at 65 for men and 62 for women. (AP PhotoEraldo Peres)
Senate President Davi Alcolumbre, right, talks with lawmaker Eduardo Bolsonaro, center, and Senator Flavio Bolsonaro, both sons of the nation's president, during the final voting session on pension reform at the Senate in Brasilia, Brazil, Tuesday, Oct. 22, 2019. The most meaningful impact is the establishment of a minimum age for retirement at 65 for men and 62 for women. (AP PhotoEraldo Peres)
The Senate, seen reflected in a mirror, left, holds a final vote on pension reform in Brasilia, Brazil, Tuesday, Oct. 22, 2019. The most meaningful impact of the reform is the establishment of a minimum age for retirement at 65 for men and 62 for women. (AP PhotoEraldo Peres)