Economy & Business - April 2021

MEXICO | Pension reform. On 22 March Mexico’s President Andrés Manuel López Obrador announced that his government plans to decrease the state pension age from 68 to 65; and that it will gradually increase pension payouts over the next three years, until they reach double the current amount in early 2024. This would begin with a 15% increase later this year, followed by a 20% increase (plus inflation) at the start of 2022, 2023, and 2024. The plan will affect 10.3m retirees, who will receive a bi-monthly government pension of M$6,000 (US$290). López Obrador has said that the increased pension payments will not impact public debt or taxes, nor prompt increases in fuel prices, pledging that the funds will come from savings made through his administration’s ‘republican austerity plan’. The pension changes will be implemented from July, shortly after the midterm federal legislative and state elections.

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