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The Consar added that mandatory savings is insufficient for an adequate pension; It is urgent to make the investment regime more flexible and to promote the formalization of the economy. Image: Pixabay
MEXICO
The retirement savings system (SAR) has existed for 21 years with significant challenges to be met such as an insufficient amount of compulsory savings to secure a pension adequate more voluntary savings .
This was declared by the National Commission of the Savings System for Retirement (Consar), which pointed out that at the end of May, the SAR accumulated a balance of 3.28 billion pesos retirement savings, a figure that represents 14.84% of the gross domestic product (GDP) of the country
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The Regulatory Body of the Retirement Fund Administrators (Afores) clarified that the System is facing significant challenges as a compulsory insurance ins for to guarantee an adequate replacement rate (it is estimated that under the present conditions there will be a pension between 25 and 30 per cent of the last salary).
He also felt that it is necessary to promote Voluntary Saving more actively through joint actions of government and business; at the end of May this year, voluntary contributions amounted to 63,567.3 million pesos a figure which almost tripled in real terms, which was reported at the end of 2012 (13,052, 1 million pesos).
He added that it is necessary to make even more flexible the investment regime in order to continue to offer competitive returns, despite the fact that out of the total accumulated resources in the pension system, 45% (1.48 trillion pesos) net returns on commissions that have been generated over time, the rest are tripartite contributions.
Returns in the 21-year history of the pension system are located in 11.31 percent in nominal terms and 5.40 percent in real terms, that is, once inflation has been updated, which continues to place them as a great alternative for saving money in the country, he said in a press release.
Do you ever make voluntary savings in your #AFORE ? Remember that with this you can increase your pension. See more info here: https://t.co/l1Qgn2a7Zy pic.twitter.com/9h1oHnsVva
– CONSAR (@CONSAR_mx) July 2, 2018
A other challenge for the system is to incorporate the pillars non-contributory and contributory to achieve more efficiency and fairness in our pension scaffolding, in addition it is necessary to 39, encourage self-employed workers and join the SAR, as coverage of pensions in the country remains low.
It is essential to continue to promote actions that encourage formalization in the economy to increase the density of contribution, "the SAR stressed after highlighting that there is 60.9 million accounts which represents for many Mexicans their first and perhaps only contact with the formal financial system.
In addition, he considers that the downward trend of commissions should continue [ 1 9459014] even if a reduction of 1.9% was reached, which was billed in 2008 to 1.02% today. # 39; hui; in 2018, the maximum commission was 1.09% by Metlife and the lowest by 0.85% by Pensionissste
Consar added that the available products should be expanded at the time of retirement to cope with the phase Mexican Economics Education and Culture It is estimated that savings to Afores already represent the second largest patrimonial pillar of Mexicans, only behind the
Until now, 1.1 billion pesos of Mexicans' pension savings have been earmarked for the development of Mexican businesses of various sizes belonging to different sectors of the economy. 39, economic activity.
He finds funding for infrastructure and housing for 408 thousand 286 million pesos which generates a virtuous circle for development, he said.
* JVR
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