In light of the celebration of the FIAP Annual Assembly, held on October 25, the FIAP Board of Directors issued a statement calling for the design of an inclusive and financially sustainable public pension policy.

According to the statement, the FIAP-AMAFORE 2023 International Seminar held on October 23 and 24 coincided with the 26th anniversary of the creation of the individual savings system in Mexico, which to date has accumulated US$293 billion in assets under management, which represents 18% of GDP. In this context, the FIAP Board of Directors highlighted the development that the Mexican pension system has had and highlighted the implementation of the pension reform that “increased the contribution to the individual account from 6.5% to 15% gradually, positioning the country as a leader in these matters in the region and a positive example to follow.”

The statement emphasized that, as a result of global demographic changes, the countries that have included individual savings as part of their pension system have grown from 17 to 51 between 1999 and 2022. In addition, it specified that, by 2050, one in six people will be over 65 years old. Along these lines, FIAP pointed out that “this forces us to be very careful in the design of an inclusive and financially sustainable public pension policy.”

FIAP also highlighted the “urgent need to incorporate new sources of financing, strengthen voluntary savings plans, and establish other retirement savings modalities that complement the existing ones.” This, considering the high levels of labor informality in Latin America, which exceed 140 million workers and who currently generate income independently and informally. “It is important to keep in mind that access to a pension is a universal right,” FIAP stressed.

In this sense, FIAP expressed its commitment to working together with different actors in the public and private sectors so that policies are developed at the national level in accordance with the needs of each country, which promote pensions that prevent poverty in old age and allow achieving an adequate quality of life. “For FIAP, members must be at the center of the discussion and be granted pensions that give them peace of mind after all their years of hard work,” it added.

Finally, the FIAP Board of Directors declared the “need for Latin American countries to establish or promote a well-designed non-contributory pillar that protects the elderly from poverty and does not discourage contributions to contributory programs”, considering “the rampant labor informality in the region, with an average of 44% of employment, as well as the new work modalities in the labor market,” it concluded.

Group photo of attendees at the FIAP 2023 Annual Assembly, held in Mexico City, on October 25, 2023