This paper analyzes the impact of demographic changes on the income distribution in Brazil. More specifically, the paper evaluates how changes in the age structure contributed to increase per capita income and to reduce inequality between the poorest and richest family groups. Additionally, the paper provides a comparison between rural and urban areas in order to understand how these dynamics had a different impact between more developed (urban) and less developed (rural) areas. Results highlight that changes observed in the family structure (particularly, decreasing share of nuclear families and increasing share of couples without children) were more pronounced among the richest families, contributing to (i) increase the income of the richest families and (ii) increase income inequality between richest and poorest families, as well as between urban and rural areas. The paper finally discusses prospects for poverty and inequality in Brazil as a result of demographic changes in the future.