LatinNews Daily - 22 March 2021

In brief: Mexico’s López Obrador announces pension changes

* Mexico’s President Andrés Manuel López Obrador has announced that his government plans to decrease the universal pension payout age from 68 to 65, and will gradually increase 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 ‘republican austerity plan’. The pension changes will be implemented from July, shortly after the federal midterm legislative and state elections.