The pension system must adapt to working conditions

21 years after the creation of the above, the system administers 60.9 million accounts; however, only about 22 million contribute continuously, said Verónica González, representative of the commission of research and principles of the Mexican Association of Actuarial Advisers

"The population that contributes continuously, that is, "say bi-monthly bimonthly There are about 22 million people with whom about 40 million workers contribute sporadically," he said.

The above, he says, is because workers are constantly changing between formal and informal employment, which affects the 1,250 weeks of contributions required to apply for a pension.

González pointed out that, in view of this problem, it is necessary to modify the pension system, in the sense that the workers that they are in the formality or informality.

"For this mobility of the workforce we have 40 million workers, it is necessary to think of a system that adapts to working conditions and not vice versa."

David Kaplan, Senior Labor Market Specialist at the Labor Market and Social Security Unit of the Inter-American Development Bank. , mention the case of the self-employed, since, although they are people who pay taxes, they are not worried about retirement savings.

"The system must be simplified for the user, the self-employed as well as the domestic. they should have a system that allows them to make constant contributions so that they do not neglect saving their pension. "

He agreed that there are millions of informal workers in formal enterprises, so he considers it necessary to separate the system" There must be a single system for all Mexicans financed by general taxes, It benefits the labor market because the funding does not fall on the employee contributions and also improves the pension system, "he explained.

He added that incentives should be sought to control the best technologies, to enforce the obligations of employers who have their workers well-registered with the real wages they receive.

Challenges for the above

The National Commission of the Savings System for Retirement (Consar ) acknowledged that although there have been achievements in the above-mentioned system as an incentive for more voluntary savings, there are still challenges to improve the pension that workers will receive.

He said that it is essential to continue to promote actions that encourage formalization in the economy to increase the number of weeks that a worker registers in the formality. On average, the contribution density is estimated to be less than 60%.

He also said that it is necessary to encourage self-employed and self-employed to join the retirement savings system, since the pension schemes in the country remains weak.

The regulator of the above stressed that the amount of mandatory savings is insufficient to ensure an adequate replacement rate. This contribution rate is 6.5%, which would guarantee a pension of less than 30% of the last salary the worker receives.

He pointed out that, in the 21 years that has lasted the Afores system, savings registered by 60.9% Millions of accounts that they manage for many Mexicans represent their first and perhaps only contact with the formal financial system.

At the end of May 2018, the Afores accumulated resources for 3.28 billion pesos of retirement savings, a figure that accounts for 14.84 percent of the country's gross domestic product, according to data from the Consar.

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