The demand for private pension in Brazil: an empirical approach

Abstract

The life expectancy in Brazil rose steeply over in recent years and the number of investments in private pension have been on the rise. In fact, better understanding the attributes that drive the demand for this product is a necessary condition for planning the segment. In this sense, this study aims to analyze the socioeconomic determinants of the individual choice to invest in private funds in Brazil. For this, a logistic regression was estimated by using PNAD 2011 data. The mains results revel, as expected, that income, schooling and age positively influence the probability of product acquisition. In addition, it was also found that men and residents of the Southeast in Brazil have greater chance to invest. Hence, we concluded that public and private managers should plan the future of social security take into account the growth trend of income and education, as well as the population aging.