Retirement age will be raised to 68

During the government led by President Andrés Manuel López Obrador there will be a profound reform of the Retirement Savings System (SAR), which will have as its core elements the increase in the mandatory contributions and the retirement age.

Retirement age will go up from 65 to 68 years.
Retirement age will go up from 65 to 68 years.

This is a "prevailing need", as well as one of the pending in matters of social justice, said the president of the National Commission of the Savings System for Retirement (Consar), Abraham Vela Dib.

In his first media interview, he said that this reform will be ready for the second half of the Administration, with the objective of Mexicans having better pensions.

"The intention is that this reform, to take the decision to present it in Congress, regardless of its characteristics, would be occurring in the second half of this Administration, approximately three years from now."

He said that they are already analyzing different reform proposals, including that of the Retirement Fund Administrators (Afores), that of the past Administration, as well as working on their own, to have the best alternative that gives sustainability to the system and that allows workers aspire to higher pensions.

What is "inevitable", he said, is to increase the mandatory contributions, which today are 6.5% of the base salary of workers who contribute to the Mexican Institute of Social Security (IMSS), at levels of between 10.5 and 14%, in addition, to raise the retirement age, from 65 to 68 years.

These are the two fundamental parameters to aspire that workers' pensions are around 70% of the last salary, according to the Organization for Economic Cooperation and Development (OECD), since today they are estimated at around 30 percent.

via: Zocalo