Brazil faces a critical need for a new social security reform, as emphasized by various specialists. They argue that necessary changes should have been anticipated long ago, due to the country's unique economic pressures on public finances. Despite the last major reform in 2019, ongoing issues such as high informal employment, changes in the labor market, and a rapidly aging population are compelling the government to reconsider the existing social security rules.

Three main factors are driving this urgency for reform: the high level of informal employment, which includes jobs that do not contribute to social security, the indexation of benefits to the minimum wage despite real increases over time, and the demographic shift characterized by an aging population coupled with declining birth rates. These elements have combined to strain the already challenged public accounts, pushing the social security deficit of the General Social Security Regime (RGPS) to potentially increase significantly in the coming decades.

The last reform was successful in managing the deficit for a short term, primarily in 2024 and 2025, but government projections indicate an alarming possibility of the RGPS deficit more than quadrupling over the next 75 years. This highlights the urgent requirement for policymakers to introduce new reforms that would stabilize Brazil’s social security system to ensure its sustainability in light of these evolving challenges.