Developing Country w/ relatively young population.

Demographic changes.

Decrease in fertility rates.

Increase in longevity.

What steps must Mexico take to capitalize on the opportunities of an aging population and to ensure that Mexicans can age with dignity, security and independence?

Pillar 1

Guaranteed Pension for those who have not saved enough.

Indexed minimum wage for low-income workers.

Pillar 2

AFOREs

Mandatory contributions

Pillar 3

Voluntary Savings

World’s urban population is estimated at 3 billion

Expected to rise to 5 billion by 2030

Mexico’s urban population 77% of total population

Rural population 25 million – most living in poverty

Societal Stance• ¼ of population live in rural areas. • Urban poor are surrounded by services &

opportunities. • Procampo main cash transfer.

Individual Stance• Decline in Rural – people moving to urban areas. • Need to incorporate own finances.• Consequences will impact public finances.

Societal Stance• U.S Recession affecting Mexican immigrants.• Decrease in immigration• Remittances – 2nd most important source of foreign

currency.

Individual Stance• Immigrant workers who continue to send money to

their family. • Recession has impacted this cash flow. • Put small percentage into savings. • Similar to Pillar 3 (volunteer saving).

Societal Summary• Three Pillar Pension System. • Excludes poorest citizens

– Benefit from a plan similar to the United States.

• Procampo main transfer– Benefits rural women, young women – not older adults

Individualized Plan’s Summary• Encourage people to contribute to Pillar 3. • Family obligation .• Better education – Better jobs.

Mexico facing challenges due

Less people of the working age to support

Hope in the urbanization … but things can change