Wednesday, December 6, 2023

For the fifth year in a row, Mexico ranks low for pensioners’ quality of retirement

For the fifth consecutive year, Mexico was given a low ranking for the quality of retirement afforded to its pensioners, placing 37th out of 44 countries.

The Global Retirement Index 2021, collated by Nataxis Investment Managers, shows that the country performed worse than last year in a number of categories, including quality of life.

“Mexico has a lower score in the quality of life sub-index this year due to lower scores on environmental factors and happiness indicators. Likewise, it is also among the five lowest on the indicators of air quality and water and sanitation,” it states.

On health, Mexico continues to rank low, although there is reason for optimism: it “continues to occupy lower positions in the health sub-index, among the 10 lowest … although it shows an improvement in the life expectancy indicator, where it moved up two places,” the report says.

In the finance sub-index, Mexico stands in 16th place and continues to perform well, with a second place ranking for old-age dependency and fifth place for tax pressure. However, it is among the bottom 10 countries for governance and government indebtedness.

The head of Natixis Investment Managers Mexico, Mauricio Giordano, explained the supply factors which are squeezing retired citizens, which have intensified in the COVID-19 pandemic. “Even with the promise of a full global economic recovery, that we don’t anticipate until the first half of 2022, retirement security is still a big question mark; given demographic and economic changes that limit the resources of governments, employers and workers around the world,” he said.

The report detailed further economic factors which compromise the world’s retired. “The risks posed by inflation, interest rates and public debt, and the financial challenges to employment and health services have been exacerbated by the COVID-19 pandemic. Retirees are particularly vulnerable to low rates and rising inflation, which impact the ability to generate income during retirement,” it states.

Iceland ranks first overall in the table for the third year in a row, followed by Switzerland, Norway, Ireland, the Netherlands, New Zealand and Australia. Germany jumped two positions to eighth place, swapping places with Canada which dropped to 10th and Denmark remained in ninth.

Mexico ranks above Russia, China, Colombia, Greece, Turkey, Brazil and India, which is in last place.

With reports from El Universal

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