The purchasing power of pensioners is affected

Inflation continues far from the objective of the Bank of Mexico (Banxico), during the first half of October the National Consumer Price Index (INPC) stood at 8.53 percent.

Specialists agree that this indicator is one of the phenomena that can most affect workers’ pensions in the medium and long term.

Héctor Manuel Magaña Rodríguez, Coordinator of Analysis and Research at the Tecnológico de Monterrey’s Center for Research in Economics and Business, explained that the current level of the National Consumer Price Index is eating up the purchasing power of workers who did not allocate part of their pension to investment.

“The people who receive a pension are going to see an increase in it, but until the following year, but while this year as prices have been increasing, this is hitting them in their pension now it is not enough to acquire the same products compared to last year,” he said.

For his part, the accountant Rolando Silva Briceño, Member of the Social Security Technical Commission of the Association of Public Accountants of Mexico, points out that not only is the issue of inflation affecting pensions, but also those who are just thinking about retiring will suffer the effect of the handicaps that the Afores have had.

“The money that you already have liquid is losing its purchasing power, but also those who had to make partial withdrawals to their Afore or are close to retiring will be affected by the disabilities, since they will receive fewer resources that will be enough for less“.

alba.servin@eleconomista.mx