Mexico
Mexico’s retirement income system main characteristics:
- Universal Pension (“Pensión para el Bienestar de las Personas Adultas Mayores”)
- Social Security Pension
- Individual Savings and Private Pension Plans
Universal Pension (“Pensión para el Bienestar de las Personas Adultas Mayores”)
- Provides a basic monthly income to all citizens aged 65 and older.
- Approx. MXN 4,800 each 2 months.
- Ensures a foundational income for all seniors.
Social Security Pension
- Law 73 (1973 Social Security Law):
- Defined benefit scheme.
- Pension based on average salary in last 5 years and years of contribution.
- Law 97 (1997 Social Security Law):
- Defined contribution system.
- Pension based on savings in individual accounts managed by Afores.
Individual savings and Private Pension Plans
- Additional savings through employer-provided pension plans.
- Can be defined benefit or defined contribution.
- Encourages extra savings with potential tax benefits.