Millennials know about the importance of having a pension at the time of retirement and that this has to be adequate; but they do not have a clear idea on how to achieve it so it is necessary to work in several aspects to support this segment of the population, said the Ministry of Finance and Public Credits.
When referring to the national survey: "What do Mexican Millennials think about saving for retirement?" (From the National Commission for the Retirement Savings System). The Ministry of Finance and Public Credits, states that according to the results it is required to offer the Millennials more and better tools to save; such as applications, calculators and domiciliation, and to provide practical information on the benefits of saving in a Retirement Fund Administration (Afore).
Likewise, to encourage voluntary savings via automatic domiciliation or frequent reminders and to facilitate the financial inclusion to the Retirement Savings System of unaffiliated workers, through simple tools that allows them to register easily with a Retirement Fund Administration and start saving.
In the weekly report of the spokesperson, the agency reports that on February 22, the National Commission of the System for Retirement Savings released the results of the study, which seeks to be clear positioning in matters of pensions and retirements of the Millennials, that is to say, of the Mexicans of 33 years old or less who were born between 1984 and 1995.
According to the study, much of this population is represented in the so-called in the "Generation Afore", symbolizes 36% of the total accounts in the SAR and adds 20.5 million people.
The most relevant result of the survey is that 7 out of 10 Mexican Millennials would like to have an Afore account but 80% need help to save.
Also, what would motivate Millennials to save on an Afore account are earnings and yields (42%), easy (23%), Afore promotions (15%), deductibles and tax benefits (13%).
Another relevant fact that the survey showed is that these young people consider that an adequate level of pension would be between $383.25 and $511.00, but they do not know that in order to reach that monthly income it is necessary to have a salary, at the time of retirement between $1,073.10 and $1,533.00.
Although the results show that a good job has been done in recent years in the field of information, because 88 percent know what an Afore is and 71 percent say that it is necessary to save before age 30, retirement is a topic they see far.
This generates that in the case of those Millennials that already have an account in an Afore resort to the withdrawals by unemployment, without knowing that this practice will affect their future pension, because it reduces the amount saved as well as the weeks of quotation required for the retirement.
Given these results, the Ministry of Finance and Public Credit report states, it is very important that Millennials take into account five key aspects for adequate financial stability, in order to be ready when the time comes to retire.
Mention first of all to choose the Afore that gives more yields in the long term; to save with the simple math of the little by little; make contributions to the Afore account, which currently is easy, fast and secure.
Fourthly suggests planning to anticipate any eventuality; and not depend economically on anyone during old age, which will allow a better control of "your life and your activities, at your own pace and taste."
The authority suggests entering the page www.consar.gob.mx, where the interested person can find all the information related to the retirement and the tools to decide with better bases.
Via Noticias MVS
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