AN OPPORTUNITY LOST Pensions, the amendment that never was
The Social Security and Retirement Savings laws amendments are filled with chiaroscuro. They tackle relevant issues like the replacement rate, the high contribution weeks, and the high commissions charged by the administrators; nevertheless, it leaves aside issues of greater significance like labor informality, the care system (linked primarily to women) and, the access to public health.
The law’s amendments only strengthen the labor market duality in Mexico (formal and informal). In the best-case scenario, the amendments will manage the evil better (which will still be present), but they are not designed to fill Mexico’s economic and social gaps. From a macroeconomic view, it must be stressed that resources from the economy will be reassigned and will raise the weight of the pensions in the Mexican financial system.