More Brazilians Save Money for Old Age, But the Country Is Still the 101st in the Global Ranking

07/02/2018 - 11h14

Two years ago, publicity student Enzo Terra Silveira, 20, began to save half of the salary he makes as a marketing manager of a whirlpool tub franchise.

Every month, he has transfered 20% to a savings account and 30% to a private social security plan - he does not intend to use that money for the next 30 years.

Silveira is an exception: he is among the 6% of Brazilians between ages 15 and 24 who said in 2017 that they were saving money for old age.

Considering all age ranges, the number of Brazilians saving their money reached 11%, making the country rank 101st among 144 countries, behind far poorer nations, such as the Philippines (26%), Bolivia (20%) and Mali (16%) and below the average of developed countries (16%).

The most recent figure is three times higher than that of 2014 (4%); however the study's margin of error could mean the hike was not as big as it seems. The survey has a 3.7% margin of error, thus the total in 2014 varies between 0 and nearly 8%, while the 2017 results vary from 7% to almost 15%.

The average number of Brazilians who managed to save money in the 12 months prior to the survey showed very little change. In 2014, the number reached 28%, while the most recent study showed 32.5%.

At first it could seem contradictory that the number of people who managed to save money during the worst recession in Brazil's history did not fall. However, the crisis could be the reason to explain the phenomenon.

"If jobs are at risk or if there are uncertainties regarding the future, the so-called precautionary savings grows," says Ricardo Brito, a professor at Insper.

Translated by THOMAS MUELLO

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