In Mexico, less than 4 out of 10 people keep for you withdrawal, although it is him 58.6% of the population is actively saving, a study conducted by the organization Mexico, how are we doing? (MKV).
Similarly, the Mexico Savings Diagnostic, jointly prepared with Vanguard, the world’s second-largest money manager, also showed that short-term, such as dealing with emergencies, unforeseen events, or general household expenses.
Added to this is the fact that older people income and what do they have official employment are more likely to save than those with lower wages and informal work. In addition, although women spend more resources on old age or retirement than Men, they receive lower pensions and have less access to official accounts.
With this in mind, the organization calculated that there is potential for money savings. 22.96 million in the country. Of these, 15.88 million may be those who are already saving and may switch to other instruments or increase their contributions. The remaining 7.1 million have sufficient resources, but do not save.
gender gap
The report also notes that Mexican women save proportionately more for retirement than men, although they receive lower pensions and have less access to official accounts due to wage gap what is in the country.
According to the diagnosis, 2.8% of them allocate funds for old age or retirement, while for men this percentage is 2.6%. However, 48.8% of men have a retirement account compared to 30.7% of women.
During the presentation of the study, Sofia Ramirez from Mexico, how are we doing?, noted that informal workers save less because they are not registered with the social security system, and wages are lower.
According to data from National Commission for the Pension and Accumulative System (Consar), women have fewer funds in their retirement accounts due to lower wages than men, with average balances of 67,700 pesos ($3,563) and 92,200 pesos ($4,852), respectively.
With this in mind, the organization emphasized the need to create mechanisms to ensure the involvement of women in wage market. Similarly, he pointed to a lack of choice in the use of women’s time.
recommendations
Based on these results, MCV issued 13 recommendations, among which stands out savings plans for voluntary retirement with automatic enrollment and opt-out, modification for repayment of resources from the individual account and institutional strengthening.
He also called for more formalities in the Mexican labor market, where six out of 10 jobs are informal.
In addition, he suggested using technologies in retirement savings accounts, helping to better integrate young Mexicans who are major potential savers.
Regarding the current social pension program that the Mexican government provides to all older people, MCV believes that this is a good initiative, although it believes that better reallocation of resources is needed.
“More savings mean more economic growth, and more economic growth means more savings. It’s a virtuous circle,” Sophia Ramirez repeated during the presentation.
“More savings for more people means a better future and healthier public and private finances,” he added.
(As reported by EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
