Holding true to his campaign promise, President Andres Manuel Lopez Obrador has expanded pensions for older citizens.
Not only has he raised payouts, but AMLO also lowered the starting age for people in indigenous communities, such as the Maya.
Small government pensions go to Mexicans over age 68; for the indigenous, pensions will begin at 65. In all, 8.5 million citizens will be automatically enrolled by the end of February, said the president.
Lopez Obrador said Sunday that the elderly will receive 2,550 pesos — roughly the equivalent of US$133 — every two months.
That is nearly twice the amount that elderly residents in Mexico City received in 2018.
“We will distribute between 300 and 500 billion pesos from the Federal Treasury to people directly without going through any administrative office of the government,” the president announced.
Mexico reformed its pension system in 1997, transforming it from a pay-as-you-go scheme to a fully funded, private and mandatory defined contribution plan.
The reform was modeled after the pension reforms in Chile in the early 1980s, and was a result of recommendations from the World Bank.
Sources: Associated Press, Aristegui Noticias