How saving for retirement and pension?
Saving for retirement and pension should be started as soon as possible, whether along with beginning to work or having already numerous years of experience, the purpose is to enjoy the retirement stage in a good way.
It is not the same to commence saving at the age of 25 than to do so at 55.
The ideal is to begin saving for retirement at an early age; the more years you save, opportunities increase to maintain a proper lifestyle. By saving 10% of your wage you may increase the monthly pension.
Holding voluntary savings is ideal nowadays. By the end of 1980, the pension system in Mexico was under the responsibility of the Mexican Social Security Institute (IMSS). The distribution scheme and benefits is based on the fact that contributions from active workers paid an important part of the pension of retired workers.
Such a pension system presented problems, given the combination between the increase in life expectancy and the decrease in the proportion of active workers, thus impacting the available funds to cover the payment of future pensions.
In March 1996, the initiative of the Retirement Savings System Law was presented to the Congress of the Union, with the aim of establishing an efficient and financially sustainable scheme. On July 1, 1997, the reform to the pension system came into force.
From that moment, a new pension scheme was created in Mexico, operated by pension fund managers called Administradoras de Fondos para el Retiro (Afore), regulated by the National Commission of the Savings System for Retirement (CONSAR), and authorized by the Ministry of Finance and Public Credit.
To save for retirement is now a necessity.
The Afore (pension fund managers) is not the only way to save for your pension. You can also resort to:
- Land investment. To invest in a well-located plot augments its value over the years.
- Retirement insurance. A savings is created to function as an insurance and aid the beneficiaries of the insured individual in case of an accident or death.
- Investment fund for retirement. Invest in bonds or shares, greater experience is required to design the most convenient investment plan.
If you are young or adult, seek the advice of specialists so as to benefit your savings for retirement. Do not let any more time pass. Get informed to create a successful savings strategy that permits you to have the retirement you desire.
