Abstract

MILLAN VALENZUELA, Henio. Pensions and poverty in Mexico: evaluation of two entrepreneurial proposals. Intersticios sociales [online]. 2022, n.24, pp.235-263.  Epub Sep 26, 2022. ISSN 2007-4964.

The need to transform Mexico’s pension system becomes more evident every day, and this has generated proposals for reform. This article assesses two proposals, both from the entrepreneurial milieu. The first suggests reducing the weeks of formal employment required to qualify for a guaranteed pension to 750; the second would raise the contribution rate from 6.5 to 15 %, but not modify the required work period. The analysis utilizes the mathematical model that the National Commission for the Savings System for Retirement (Comisión Nacional del Sistema de Ahorro para el Retiro, Consar), applies to the average contributing employee. Results suggest that the first proposal could prevent people who were not poor during their working lives, but failed to complete the required number of weeks of employment, from falling into poverty. The second would slightly increase the amount of pensions but would not impact people’s vulnerability to poverty, though even a small additional increase would significantly reduce this risk.

Keywords : Mexico; pensions; poverty; evaluation; proposal.