The resources that the administrators of retirement funds (afores) will manage in 2050, are calculated to be equivalent to 53.6% of the Gross Domestic Product (GDP), to become the main financial agent of the country, projects the National Commission of the System of the Retirement Savings (Consar).
The foregoing will generate great benefits for the country due to the magnitude of the resources that can be invested in various productive projects, commented Iván Pliego Moreno, president of the Consar, during the Social Security Week that takes place in the Chamber of Deputies.
Currently the Afores manage 5.2 billion pesos, which represents 20% of GDP, of this amount, 2.6 billion are net returns.
Pliego Moreno, estimated that in 2060 more than 90 million people will be enrolled in the Retirement Savings System (SAR). At the end of March, there were 70.8 million registered accounts.
During his presentation, Pliego Moreno spoke about the reform to the 2020 Social Security Law, which although it was a great advance, by lowering the weeks of contribution and increasing the contribution in the Base Salary of contribution, there are still issues to be addressed such as share these benefits with the rest of the population.
Contributory, 4.1% of GDP
The President of the regulatory body added that this year contributory pensions (IMSS, ISSSTE, CFE and Pemex) will represent 4.1% of GDP, that is 1.17 billion pesos. The IMSS pension payment represents 2.2% of GDP, 1% goes to ISSSTE and 0.2% to both Pemex and CFE.
The payment of pensions of former workers of Luz y Fuerza del Centro, former workers of national railways of Mexico and the Social Security Institute for the Armed Forces is allocated the equivalent of 0.5% of GDP.
At the same conference, deputy Santiago Torreblanca Engell, a member of the Social Security Commission, said that the turning point in the payment of contributory and non-contributory pensions will be 2039.
“According to the projection of the IMSS, ISSSTE and the Ministry of Finance, pension spending will increase both in absolute numbers and as a proportion of GDP until 2039, from then on it will begin to decrease because a greater number of people will retire through Afores”, Torreblanca said.
Contributory and non-contributory pensions represent 5.1% of GDP in 2022, according to an estimate by the Center for Economic and Budgetary Research. It is estimated that at the end of the six-year term, 6.5% of the product will be allocated to pension payments.
In 2022, the total expenditure on pensions will amount to 1 billion 428,377 million pesos.
In the social security week it was shown that currently 8% of the population are older adults and by 2050 it is expected to be 16.5% of Mexicans.
“The demographic change generates important challenges for the State, which includes the development of a sustainable and decent pension system for the worker without implying a high fiscal cost,” said Pliego Moreno.