Prospective Study of the Pension System in Mexico: AFORES in the Human Rights, Model of Guaranteeism, and Vital Minimum

The individual account pension plan will soon recognize those beneficiaries about to receive their pension under this scheme. The 1997 Social Security Law has incorporated strict requirements to the pension plan; therefore, the possibility to obtain a retirement through an individual account is complicated for the employee. The pension will not necessarily guarantee the quality of life given that the retirement funds have been accumulated based on contribution rates and voluntary savings but not on the monthly average of the contribution base wage, which are funds affected by negative yields. The objective of this study is to analyze the AFORES classification SB2 and the performance invested in the SIEFORES to quantify the value of the pension. It applies the hemerographic-legislative technique in the model of the guaranteeism and the principle of the minimum vital in the framework of the human rights, and a quantitative study of time series. It is concluded that individual account system pensions will not guarantee the quality of life of individual account holders.