Sao Paulo, Oct 23 (AFP) Brazilian stocks hit a record high Tuesday ahead of the approval in the Senate of President Jair Bolsonaro's ambitious pension reform bill seen as crucial to unleashing other much-needed reforms.

After some tweaks by Congress, Bolsonaro's signatory economic policy is expected to save more than 800 billion reais (USD 196 billion) over 10 years -- less than the 1.2 trillion reais originally projected.

Brazil's benchmark Bovespa index finished at 107,381.1, up 1.28 per cent on the previous day, which was also a record close.

The measure introduced a minimum retirement age and increase contributions over a longer period of time.

The overhaul obtained enough votes in Congress to support a constitutional amendment.

The pension bill was passed with overwhelming support in the lower house earlier this year and was approved with strong support in a second vote by the Senate on Tuesday.

Bolsonaro has warned that Brazil's generous pension system would bankrupt the country if the changes were not adopted.

The proposal initially faced stiff resistance from trade unions and a hostile Congress.

But there has been a growing consensus that pension reform is necessary, particularly as the population ages and the economy struggles to grow. (AFP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)