• CONCERN: Only 30% of Mexican workers with privately managed retirement accounts (AFORE) will be able to enjoy a pension due to how difficult is for many to reach the minimum number of weeks of contributions needed, the Mexican pension fund trade body (AMAFORE) said
• INFORMALITY: Given that many come in and come out of the formal economy, many Mexican workers with an AFORE are not able to reach the required 1,250 weeks of contributions to enjoy a retirement pension. Experts are recommending a reform.
• REFORM: “What we are proposing … is that workers can access the minimum guaranteed pension with less contribution weeks, that is, starting at 750 weeks of contributions, which is approximately 12 years”, said Bernardo González, head of AMAFORE.
• CONTEXT: Since a major reform in 1997, Mexico has a defined contributions pension system where workers are directly responsible for their retirement. There are today 65.8 million AFORE accounts. In 2021, the first class of people entirely under the new system will reach retirement age.
