Given the discussion about the creation of the Welfare Pension Fund, specialists have stated that it is necessary to reform of the pension system in Mexico.
The last modification corresponds to the changes in the Social Security Law of 1997 in which the pension system managed by the Mexican Social Security Institute (IMSS) was changed to one of individual accounts for workers.
This system is controlled by the Retirement Fund Administrators (Afore) which has been mentioned because the most recent proposal states that inactive accounts They would form part of the new Pension Fund.
In addition to this system, the 1973 regime remains in force under which people receive a pension that is based on the average salary in their last two years of work and is related to their retirement age.
What are pension systems like in the world?
In the world, the Netherlands lead the best pension systemaccording to the 2023 Mercer CFA Institute Global Index.
In second place is Iceland and in third place is Denmark. The Netherlands is currently reforming its pension program to change its collective structure to a more individual approach.
However, the report says that the system will continue to offer good benefits after the changebacked by a strong asset base and regulation.
The aging of the population puts countries’ pension systems under pressure, combined with the increase in public debt and high inflation, while they must also face challenges such as the inclusion of workers in the collaborative economy, known as “gig”. ”.
“The conclusion is that, All over the world, people must start taking care of themselves when he retires,” David Knox, senior partner at Mercer and lead author of the report, said in an interview. “We can no longer depend solely on social security or public pensions.”
Argentina was the worst ranked country among the 47 analyzed, while the United States ranked 22nd, two lower than last year. Australia ranked 5; the United Kingdom, 10; Japan, 30; and China, 35.
The decrease in birth rates has put pressure on several economies and pension systems in the long term, according to the report, negatively affecting the sustainability scores of countries such as Italy and Spain.
The report also highlighted several Asian systems, such as China, Korea, Singapore and Japan, that have reportedly undertaken reforms to improve their scores in the past five years, it said.
The artificial intelligence have the potential to improve pension systems by leading to more efficient and better-informed decision-making, which could lead to greater real returns on investment, Knox said, adding that the technology could also help people make long-term financial decisions.
*With information from Bloomberg
