Are you 70 years old? This is how you can lose your retirement savings due to the Afores reform – Publimetro México

The remodeling at outsidewhich proposed Morena in it Congressimplies two risks serious illnesses that can cause millions of older adults lose their retirement and housing savings, which they accumulated throughout their lifewarned the IMCO.

He Mexican Institute for Competitiveness (IMCO) explained that the reform proposes taking the saving for him withdrawal of the workers that they reach the age of 70 years, who do not have an active employment relationship; that is, they no longer work for a company o business formal.

He said that the Morenoist initiative states that said resources –estimated at more than 50 billion pesos– are transferred and used by the federation to create the Pension Fund for Welfare.

This with the purpose that the government complete the pension of workers whose amount of retirement is less than or equal to salary monthly average of employees affiliated to the IMSSwhich in 2023 reached 16,361 pesos.

All, with the promise that affected people aged 70 or older – or their beneficiaries in the event of the death of the owner – they can recover their saving of withdrawal and housing Infonavit when they request it.

Risks for workers

Through research Pension Fund for Wellbeing: implications for public finances and workers, IMCO pointed out that the first and most important risk is that the remodeling to the Afores does not establish a mechanism for the return of resources, as promised.

“Although the initiative indicates that workers and their beneficiaries have the right mandatory to receive the resources that have been transferred, the mechanism of return of these resources – along with the interests generated – by the IMSS, ISSSTE o Infonavitas applicable, is not yet defined.

“This mechanism might involve excessive procedureslong waiting times and possible administrative complications that might demotivate these workers to exercise their claim”.

The IMCO pointed out that the second risk for workers is that the returnswhich today people aged 70 receive through the outsidecan be smaller and easily diluted, because the reform does not define what the strategy of investment.

“Although it is specified that the saving of the workers, which is transferred to the Fund, will generate interests from the regime of investment that – at the time – defines its technical committee, there is a risk that the workers will obtain lower returns those they might receive if their resources continued to be managed by the outside and Infonavit.” Although they can be higher.

Danger to public finances

When referring to the impact of the remodeling of the outside in the finance public, research by the Mexican Institute for Competitiveness indicated that the most serious dangers can be explained in two parts:

• First. The sources of financing of the Fund of Pensions for him Welfare They are not recurring and are subject to many variables. In addition to retirement savings for 70-year-old workers, the fund will receive resources from the utilities net of Maya Trends, Mexican Aviation and the AIFA.
• As well as the income obtained by the Institute to Return What Was Stolen to the People (INDEP) and the money for the liquidation of the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development (FND), among others.
• Second. Faced with this scenario, it is possible that the government federal perform contributions additional funds to the fund, “which would divert resources from other areas, such as education, health, security o investment public.”

IMCO proposal on Afore reform

1. Make a assessment meticulous and evidence-based approach by Congress, focused on its implications for the finance public and the resources that workers Mexicans have accumulated throughout their work careers in the outside e Infonavit.
2. Open a dialogue constructive and participatory through a exercise of open parliament in which it involves expertsrelevant sectors and society in general, in order to enrich the debate and improve the functioning of the pensions for the benefit of all Mexicans.