Developing Country w/ relatively young population. Demographic changes. Decrease in fertility rates. Increase in longevity.

What steps must Mexico take to capitalize on the opportunities of an aging population and to ensure that Mexicans can age with dignity, security and independence?

Pillar 1 Guaranteed Pension for those who have not saved enough. Indexed minimum wage for low-income workers. Pillar 2 AFOREs Mandatory contributions Pillar 3 Voluntary Savings

World’s urban population is estimated at 3 billion Expected to rise to 5 billion by 2030 Mexico’s urban population 77% of total population Rural population 25 million – most living in poverty

Societal Stance ¼ of population live in rural areas. Urban poor are surrounded by services & opportunities. Procampo main cash transfer.

Individual Stance Decline in Rural – people moving to urban areas. Need to incorporate own finances. Consequences will impact public finances.

Societal Stance U.S Recession affecting Mexican immigrants. Decrease in immigration Remittances – 2 nd most important source of foreign currency.

Individual Stance Immigrant workers who continue to send money to their family. Recession has impacted this cash flow. Put small percentage into savings. Similar to Pillar 3 (volunteer saving).

Societal Summary Three Pillar Pension System. Excludes poorest citizens –Benefit from a plan similar to the United States. Procampo main transfer –Benefits rural women, young women – not older adults

Individualized Plan’s Summary Encourage people to contribute to Pillar 3. Family obligation. Better education – Better jobs.

Mexico facing challenges due Less people of the working age to support Hope in the urbanization … but things can change