21 years have passed since the introduction of the individual accounts pension system. Since 1997, workers enrolled in the Mexican Social Security Institute (and government employees since 2008) have contributed to their individually funded pension savings accounts.

This document provides an in-depth description of the functioning of the pension system and the regulatory and oversight activities of the National Commission for the Retirement Savings System (CONSAR), also outlining the significant benefits of the individually funded pension system and the challenges it faces.

The document contains the following sections:

1. Context of the country’s demographic situation, as well as the situation of its senior citizens. The country is experiencing a demographic transition characterized by the aging of its population, mainly explained by reduced fertility rates and increased life expectancy.
2. The country’s pension framework. Even though Mexico does not have an integrated pensions system, a brief description of the country’s pension framework is presented.
3. Operation of the SAR. The document outlines the history of the pension system and CONSAR’s main activities, parameters and indicators.
4. Main benefits of system: 21 years after its establishment, the individually funded pension system shows significant progress and has achieved meaningful benefits for savers and the country, also granting a series of rights that were not available in the former pension system.

Main challenges.  Demographic changes, the labor market and the global financial system are bringing pressure to bear on the pension systems to make changes for adapting to a new reality. Although the SAR has achieved significant progress, huge challenges still lie ahead.