Mexico’s retirement income system comprises a mandatory and funded scheme which is in transition since 1997 from a defined benefit to a defined contribution scheme and includes a minimum public pension and supplemental private sector plans.

The overall index value for the Mexican system could be increased by:

  • raising the minimum pension available to the poorest aged individuals raising the level of household savingƒƒ
  • introducing a requirement that part of the retirement benefit from private pension arrangements must be taken as an income stream
  • increasing the level of funded contributions thereby increasing the level of assets over time
  • ƒƒimproving the regulatory requirements for the private pension system
  • ƒƒimproving the governance requirements for the private pension system, including the need for minimum levels of funding in defined benefit plans
  • improving the level of communication required to members from pension plans

The Mexican index value fell from 52.1 in 2015 to 44.3 in 2016 primarily due to a reduction in the assumed level of support provided to the poor.