Mexican women save more in proportion for their retirement than men, although they receive lower pensions and have less access to formal accounts due to the wage gap that exists in the country, concluded a study by the organization México, How are we doing? (MCV) presented this Tuesday.
According to the “Diagnosis of savings in Mexico”, prepared with Vanguard, the second largest investment manager in the world, only 2.8% of women allocate resources for old age or retirement, while this percentage in men is 2.6%.
This in a country where almost four out of 10 Mexicans (39.2%) between the ages of 18 and 70 have a formal retirement savings account, known as the Retirement Fund Administrator (Afore).
The gender gap in this area is 18.1 percentage points, since 48.8% of men have a retirement account compared to 30.7% of women.
According to data from the National Commission of the Retirement Savings System (Consar), women have fewer funds in their retirement accounts due to lower wages than menwith average balances of 67,700 pesos (3,563 dollars) and 92,200 pesos (4,852 dollars), respectively.
In its study, MCV also calculated that there is a potential saver of 22.96 million in the country.
In Mexico, between 2012 and 2021 the population with savings went from 50.8% to 58.6%, while its maximum peak was in 2018, when 67.8% of the population had active savings.
Among the potential savers, MCV estimated that 15.88 million could be those people who already save and could transition to other instruments or increase their contributions.
Besides, there are 7.1 million Mexicans who have sufficient resources but do not save.
With these figures, the potential savings market is estimated at 11,028 million pesos (about 580.4 million dollars).
To achieve this objective, MCV launched 13 recommendations, among which voluntary retirement savings plans with automatic registration and exit option, modification to the return of resources from individual accounts and institutional strengthening stand out.
Also Urged to increase formality in the Mexican labor marketwhere six out of 10 jobs are informal.
In addition, he suggested the use of technologies in retirement savings accounts, encouraging a better integration of young Mexicans, who are the main potential savers.
Regarding the current Welfare Pensions scheme, which the Mexican Government grants to all the elderly, MCV maintained that it is a good initiative, although it considered that it is necessary to redistribute resources in a better way, since it is increasingly concentrated in deciles of the population with higher income.
Mexican Economy JOBS WAGE GAP Afore
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