Current projections on the aging of the Mexican population estimate that in 2050, 23 out of every 100 inhabitants they will be older adults, according to information from the National Population Council (Conapo).
The situation is not exclusive to Mexico, the World Health Organization (OMS) forecasts that by 2050, the global population of people aged 60 and over will have doubled (2.1 billion) and that the number of people aged 80 and over will triple between 2020 and 2050, to 426 million.
What does old age imply?
Old age implies a greater risk of disease and a longer life expectancy, which leads us to greater economic requirements for a longer period of time. In our country we have an individual account system, where each one of us is responsible for taking care of our retirement savings, and this is not a minor thing, since there is also no support from children or relatives, as in the generations, due to because the birth rate fell.
The WHO considers that “beyond biological changes, aging is usually associated with other vital transitions, such as retirement, moving to more appropriate housing and the death of friends and partners”, and all of this must be taken into account , from the youth so that action is taken to increase savings for retirement.
As a society we need to work in harmony, even the General Assembly of the United Nations declared the period 2021-2030 as the Decade of Aging Healthy.
The Decade of Healthy Aging aims to reduce health inequalities and improve the lives of older people, their families, and their communities through collective action in four areas: changing the way we think, feel, and act about with age and ageism; develop communities in ways that foster the capabilities of older people; provide integrated care and primary health care services centered on the person, which respond to the needs of older people; and provide access to long-term care for older people in need.
What can I do from my trench?
In the first instance, it is required “to maintain healthy habits throughout life, in particular following a balanced diet, performing regular physical activity and abstaining from tobacco use, contributes to reducing the risk of non-communicable diseases, improving physical capacity and mental illness and delay dependency on care”, according to the WHO.
The other aspect that is in our hands is to take care of the Individual Account, that is, your Afore account (Administrator of Retirement Funds), at the end of June 2022 the National Commission of the Savings System (Consar) reported that They accounted for 53,066,559 accounts of registered workers and 71,410,308 accounts managed by the Afore, and one of them could be yours.
According to the National Survey of Financial Inclusion (ENIF) 2021 developed by the National Banking and Securities Commission (CNBV) “having a retirement account can be essential to ensure an adequate quality of life at the time of retiring from working life, since it allows maintaining financial stability in old age. By law, any worker registered with the Mexican Social Security Institute (IMSS) or the State Workers Social Security and Services Institute (ISSSTE) has an Afore, so in most cases the holders of these accounts are formal workers”.
It is observed in the ENIF 2021 that “the holding of Afores is higher among men (49%) than among women (31%), proportions that have remained unchanged between 2018 and 2021. These differences could largely reflect the differences in labor participation between both sexes. When considering the population with paid work at the time of the survey, a greater penetration of these products is observed. The percentage of the population with a retirement savings account is higher among people aged 30 to 59, which is consistent with their higher level of labor participation compared to younger people and older adults.
One of the characteristics of the Retirement Savings System in the country is that people have the opportunity to make voluntary contributions to their Afore in order to boost the resources received at the time of their retirement. According to the results of the ENIF 2021, around 6% of the population with a retirement savings account make voluntary contributions. This percentage, although still low, represents progress compared to what was reported in 2018 and is mainly concentrated among the population with a higher educational level.
Nearly 50% of the population that does not make contributions considers that the main reason for not doing so is that they have no money left to save. On the other hand, there is an important part of this population that offers as a reason not knowing how to do it (18%) or not knowing the advantages (12%).
It is necessary that we workers take action with voluntary savings, from a young age, even if they are small amounts, the important thing is to start and develop a habit in the long-term pension culture and that we also take care of our account with the Afore, like that tree that will give us oxygen during retirement.
patricia.ortega@eleconomista.mx
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