By Sadie James
Source: Benefits Canada
Earlier this year, Mexico’s senate approved the creation of a new pension fund to help provide more retirement security for low-income citizens.
The reform aims to ensure pensioners receive 100 per cent of their last monthly salary up to roughly 16,777 Mexican pesos (US$975), which is the average monthly wage for workers affiliated with the Mexican Social Security Institute.
“Congress approved this change to the pension system, which basically established a new welfare pension fund,” says Pedro Trejo, retirement director at WTW Mexico. “The fund was created to help employees with their retirement savings and the general population that’s involved in the social security system will get the benefit. That means more than 80 per cent of the population in Mexico could benefit from this reform.”