Mexico
Worked in Mexico? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 65, with early access from 60. On totalization, Mexico has bilateral totalization agreements, so the years you worked here may combine with other countries you've worked in. Below is Mexico's system at a glance and what expats should check.
Overview is open to everyone. Create a free account to unlock schemes, eligibility, tax and claiming for all 47 countries.
Overview
Mexico operates a multi-pillar pension system that has undergone significant reforms in 2019, 2020, and 2024.
The system combines a universal non-contributory basic pension (Pensión para el Bienestar de las Personas Adultas Mayores) for all residents aged 65+, a mandatory funded defined-contribution (DC) system administered by private AFORE fund managers (Administradoras de Fondos para el Retiro) under the SAR (Retirement Savings System), and voluntary supplementary savings. The original IMSS pay-as-you-go defined-benefit system was replaced by individual AFORE accounts in 1997 for private-sector workers and in 2007 for public-sector workers (ISSSTE). A landmark 2020 reform progressively raised total mandatory contributions from 6.5% to a target of 15% of salary by 2030/2031, reduced the minimum qualifying weeks, and improved the Guaranteed Minimum Pension (PMG). As of 2025, employer contributions stand at 9.5% of salary, rising to 10.5% in 2026.
Show full overviewShow less
A major May 2024 reform created the Welfare Pension Fund (Fondo de Pensiones para el Bienestar – FPB), which from July 2024 provides a Solidarity Supplement (Complemento Solidario) guaranteeing that eligible pensioners aged 65+ receive 100% of their last contributory salary, capped at the average IMSS monthly wage (MXN 16,777.68 in 2024, adjusted annually for inflation). This supplement is funded by the federal government and does not require additional employer or employee contributions. The 2024 reform is projected to substantially boost replacement rates, with OECD (2025) reporting net replacement rates of 80% at average wage and 132% at half average wage for full-career workers. Mexico also extended mandatory AFORE coverage to digital platform workers (gig economy) from July 2025, following the 2022 extension to domestic workers.
Despite these reforms, significant challenges remain: high labour market informality (approximately 59% of workers), low contribution density, and a fragmented system with separate regimes for PEMEX, CFE, ISSFAM, and various state/university schemes. The US-Mexico totalization agreement was signed in 2004 but remains not yet in force as of 2025. Mexico is a member of the Iberoamerican Social Security Agreement covering 21 countries, and has bilateral agreements with Canada, Spain, and other nations. AFORE assets reached MXN 8.3 trillion (23.8% of GDP) at end-2025, with approximately 70 million individual accounts.
~76% at average wage (post-2024 reform, OECD Pensions at a Glance 2025); 121% for low earners (half average wage); pre-reform AFORE-only rate was ~26% at average wage
Pillar 0: Universal non-contributory basic pension – Pensión para el Bienestar de las Personas Adultas Mayores (adults 65+; women 63+ from 2025, planned 60+ from 2026); MXN 6,000 bimonthly (2024). Pillar 1: Mandatory funded DC – AFORE individual accounts (SAR) for IMSS-affiliated private-sector workers + Guaranteed Minimum Pension (PMG) top-up from federal government; ISSSTE equivalent for public-sector workers. Pillar 1.5 (2024 reform): Solidarity Supplement via Fondo de Pensiones para el Bienestar (FPB) – guarantees 100% replacement of last salary up to IMSS average wage cap for eligible FDC pensioners aged 65+. Pillar 2: Voluntary AFORE contributions (ahorro voluntario) – tax-deductible up to MXN 152,000/year or 10% of annual income.
Mixed multi-pillar system: universal non-contributory safety net + mandatory funded defined-contribution (DC) individual accounts (AFORE/SAR) + voluntary savings; fragmented across IMSS (private sector), ISSSTE (public sector), PEMEX, CFE, ISSFAM and other special regimes
Employee
1.125% of salary to RCV (retirement) sub-account; plus ~1.25% for disability/survivors insurance; total IMSS employee contribution approximately 2.375–2.78% of salary across all branches
Employer
9.5% of salary to RCV sub-account (2025), rising to 10.5% in 2026 and 13.875% by 2030; plus 5% to INFONAVIT housing fund; plus contributions for health, disability, occupational risk (total employer IMSS burden approximately 20–35% of salary depending on risk category and salary level)
Self-Employed
Voluntary enrollment in AFORE/IMSS; self-employed may register voluntarily under 'Personas Trabajadoras Independientes' scheme at Mexican consulates or IMSS offices
Notes
Total mandatory retirement contribution (employee + employer + government) rising from 6.5% (pre-2021) to 15% by 2030/2031 under the 2020 reform. Government 'cuota social' (social quota) contribution per day of work is progressive (higher for lower-wage workers); government contribution to RCV sub-account of 0.225% was eliminated from 2023 and replaced by the new cuota social schedule. Contribution ceiling: 25 times the monthly UMA (MXN 41,273.52 annually in 2025, updated each February). UMA daily value for 2025: MXN 113.14.
Common questions
What is the retirement age in Mexico?
The full state pension age in Mexico is 65. Early retirement may be possible from 60.
Can I claim a Mexico pension if I live abroad?
Yes. A pension you've earned in Mexico stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through Mexico's pension authority.
Do totalization agreements affect my Mexico pension?
Mexico has bilateral social-security (totalization) agreements. These can let you combine the years you worked in Mexico with years in partner countries to meet a minimum qualifying period, so short stints aren't wasted. Which partners and rules apply depends on your own work history.
How is the pension system structured in Mexico?
Mixed multi-pillar system: universal non-contributory safety net + mandatory funded defined-contribution (DC) individual accounts (AFORE/SAR) + voluntary savings; fragmented across IMSS (private sector), ISSSTE (public sector), PEMEX, CFE, ISSFAM and other special regimes Pillar 0: Universal non-contributory basic pension – Pensión para el Bienestar de las Personas Adultas Mayores (adults 65+; women 63+ from 2025, planned 60+ from 2026); MXN 6,000 bimonthly (2024). Pillar 1: Mandatory funded DC – AFORE individual accounts (SAR) for IMSS-affiliated private-sector workers + Guaranteed Minimum Pension (PMG) top-up from federal government; ISSSTE equivalent for public-sector workers. Pillar 1.5 (2024 reform): Solidarity Supplement via Fondo de Pensiones para el Bienestar (FPB) – guarantees 100% replacement of last salary up to IMSS average wage cap for eligible FDC pensioners aged 65+. Pillar 2: Voluntary AFORE contributions (ahorro voluntario) – tax-deductible up to MXN 152,000/year or 10% of annual income. It includes 4 schemes in our directory.