If you were not registered in Mexican Social Security Institute (IMSS) before July 1, 1997unfortunately you fall under 1997 plan and it means Now you will not get the benefit of the previous pension scheme,
one of the advantages that people relate to rule 73 is likely to receive a pension with 500 listed weeks, In terms of the 1997 rule, the Total should be 1,250 weeks, which Means 2.5 times more.
Another disadvantage of Law 97 of the IMSS is that you cannot register in Modality 40 to increase your pension. This rule is convenient for 73 because, By increasing your average salary for the last five years worked, your pension grows. If you’re Law 97, it won’t have that effect.
In the case of pensioners through the 97 scheme, The amount will depend on the resources you have deposited in your Afore accounts we saw last year, There was also a loss in these funds, which affected the future pension. Shortage of already existing savers.
IMSS: Difference between Law 73 and Law 97 of Social Security:
One of the best recommendations we can mention is the one that manages to cite over 750 weeks within the IMSS. This will help you, at least, to keep IMSS Medical Service Guarantee And without restrictions in your life as an older adult. Here you can see more differences between the two laws:
| IMSS Act of 1973: | IMSS Act of 1997: |
| This is your plan if you started quoting before July 1, 1997. | This plan suits you if you started quoting after July 1, 1997. |
| You are entitled to life annuity pension. | Your pension will be a programmed withdrawal or life annuity. |
| Your pension is paid by IMSS from government resources. | It is paid by an insurer along with your Aforesaid balance, not by the government. |
| To be entitled to the pension, you need to contribute 500 weeks equivalent to 10 years of service. | A minimum of 1,250 weeks of contributions to the IMSS is required. This means about 25 years of formal work. |
| The average of your pension will be added to the last five years’ salary before your retirement. | The amount received will be commensurate with the money in your Afore account and the returns generated during your working life. |
| You can process your unemployment pension between the age of 60 and 64 years. You can apply for your old age pension when you are above 65 years of age. You have the option to enhance your pension through Modality 40 of IMSS. |
When an employee below the age of 60 years requests to retire, you can process an early retirement pension. An unemployment pension is processed when an employee between the ages of 60 and 64 requests to retire. The old age pension is available when an employee above the age of 65 years requests to retire. |
Perhaps the best advice is to forget that you are contributing to AFOR and bet on other sources of income for your old age. this is because To get a pension of 7 thousand pesos a month which is very less, you have to save about 2 million pesos,
it’s so hard to get because the wages of workers in Mexico are very low and it will not be possible to reach that amount of 7 thousand pesos, which is one of the minimum pensions that can be obtained in the case of Law 73.
Then, If we dismiss Afore as a real option This will give you the possibility of getting enough pension to live on, you have to look for other possibilities, these: Save, invest and find sources of passive income,
With good savings, you can see Options to invest your money so that it earns returns And your resources haven’t diminished over the years due to inflation.
with reference to the subject of passive income buying an instance Commercial Premises, You Can Rent A a house or an apartment that is cheap right now – maybe not in a particular area – but that is gaining value over the years and is a future source of income.
there are also private retirement plans We invite you to examine these platforms as per your income and savings capacity and find the best option for you. definitely, Another good option is to start your own business. That means with risks.
If You Manage to “Fall on the 20th” Before Age 40 If you belong to law 97, you will not get a good pension for your savings in AforeYou have a few decades of work and effort to achieve a better retirement.
Quote non-stop in your Afore and contribute some capital as voluntary savings advice that one should go for more aggressive options for pension which not only it won’t give you a bonus – As applicable to Law 73 – Nor the right to take a loan from the IMSS. To have a good retirement, you must start now and the solution is not in front of you.
