An Assessment of the 2019 and 2020 Pension Reforms in Mexico
IMF Working Papers, March 8, 2024
Source details
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- An Assessment of the 2019 and 2020 Pension Reforms in Mexico
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Bibliographic details
- Authors: Boele Bonthuis
- Published: March 8, 2024
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400269431.001
Summary
- The paper assesses major changes to the Mexican pension system enacted in 2019 and 2020, evaluates likely outcomes, discusses design inefficiencies, and offers policy options to improve pension system design.
- Author: Boele Bonthuis.
- Date: March 8, 2024.
Reforms and Expected Outcomes
- 2019 reform:
- The existing means-tested social pension was made universal, covering everyone over the age of 65.
- The benefit level was increased.
- 2020 reform (main regime of the private sector):
- Increased contribution rates for the funded defined contribution system.
- Lowered the minimum years of contributions needed to receive an earnings-related pension.
- Increased minimum pensions.
- The paper attempts to assess the likely outcomes of these changes.
Design inefficiencies Identified
- The paper discusses design inefficiencies of the 2019 and 2020 reforms (specific inefficiencies are examined in the full paper).
Policy options
- The paper offers policy options to improve pension system design (specific options are examined in the full paper).
Subjects and Keywords
- Subjects: Aging, Expenditure, Labor, Pension spending, Pensions, Population and demographics, Retirement, Wages.
- Keywords: Aging, Caribbean, Central America, design inefficiencies, design inefficiency, funding, labor supply incentives, minimum pension, pay-as-you-go, pay-as-you-go pension accrual, pension calculation, Pension reform, Pension spending, pension system design, Pensions, Retirement, Wages.
An Assessment of the 2019 and 2020 Pension Reforms in Mexico — IMF Working Paper by Boele Bonthuis, March 8, 2024.
Content in this bundle
- Working Paper