Reflections on our financial health
The reforms to the pension system in Mexico bring with them many questions that are not new but continue not to be correctly addressed by the corresponding authorities.
Less than a year ago, the main changes were generated, including reducing contribution weeks for guaranteed pensions, the progressive increase in employer contributions, and the change in State contributions and social contributions.
With these -and other- modifications, an attempt is made to make the pension system model functional and allow all people to have a dignified retirement and old age. But is this possible?
Recent scientific studies indicate that our life expectancy will increase considerably thanks to advances in the area of Health. Still thinking about the scientific progress that may occur in the coming decades, it will not be strange to see large populations of 90 or even 100 years old in our country, but will these people be able to live with dignity with the pension they have managed to access? Let us remember that on average, a person retires over 65 years of age - if they live to 90, it means that their pension would be their only or main income for at least 35 years. If we add to this the fact that our population is not going to increase considerably in the coming decades (according to the UN, we will be having a population growth peak projected at 164 million by 2050 and later a decrease due to low fertility), we would be facing a scenario in which there is an increasingly large adult population in quantity and years.
The 2020 reform includes very little of these criteria and mainly leaves in the hands of the worker their willingness to make voluntary contributions to their pension through the AFORES, despite the financial education programs in general, and those other specialized in savings for the future are really scarce and concentrated for populations with a higher academic level.
Our saving and investing habits, as well as financial planning specifically for retirement, will play an extremely important role in how we view our financial and physical health in our old age. What mechanisms can we count on to have a dignified retirement and how our societies will be shaped in the face of such important challenges.