Selfies Can Help Brazil Create a Super Supplementary Pension

Autores

  • Robert C. Merton Havard University
  • Arun Muralidhar George Washington University
  • Alexandre Vitorino UNIFESP, São Paulo

Palavras-chave:

Regime Geral de Previdência Social, Standard-of-Living, Forward-starting, Income-only Securities

Resumo

Brazilian policy makers and researchers have discussed the introduction of a complementary pension system to complement the Regime Geral de Previdência Social (RGPS), specially for those that want a retirement income above the RGPS ceiling. This article first recommends that the complementary system must be SUPER (Simple, Universal, Portable, Efficient with low cost and Robust Regulatation). It then proposes the adoption of a financial innovation called SeLFIES (Standard-of-Living, Forward-starting, Income-only Securities), as the default investment option for a modern capitalization regime. Brazil presents an interesting opportunity to be the first country to adopt and implement SeLFIES given the initial conditions, especially the innovations introduced in the market for government bonds. This financial innovation would help the Brazilian government address two challenges simultaneously: improve retirement security (by including even the most financially illiterate people and those in the informal sector in retirement plans) and boost infrastructure financing.

Biografia do Autor

  • Robert C. Merton, Havard University
    Ph.D., recipient of the 1997 Alfred Nobel Memorial Prize in Economic Sciences, is the School of Management Distinguished Professor of Finance at the MIT Sloan School of Management. He is also Resident Scientist at Dimensional Fund Advisors, a global asset management firm headquartered in Texas, and University Professor Emeritus at Harvard University.
  • Arun Muralidhar, George Washington University
    Ph.D., is founder of Mcube Investment Technologies and AlphaEngine Global Investment Solutions. He has served as a manager in the World Bank’s Treasury Department, and is author of, “Fifty States of Grey: An Innovative Solution to the DC Retirement Crisis.â€
  • Alexandre Vitorino, UNIFESP, São Paulo
    was CIO at Votorantim Asset Management, represented AMUNDI in Brazil, Corporate Bond Portfolio Manager at Safra Asset and has a Master Degree by Universidade Federal de São Paulo (UNIFESP).

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Publicado

2020-10-14

Edição

v. 11 n. 1 (2020): JANEIRO-JUNHO

Seção

Artigos