At what age do Mexicans retire?

Oct 18, 2025 3 min read •

Retirement senior care Healthy Aging

While the statutory retirement age in Mexico is officially 65 for many, statistics show that the average effective retirement age is significantly higher. Understanding at what age do Mexicans retire? requires a closer look at the country's complex and evolving pension systems.

Quick Summary

Mexican retirement policies are governed by a dual system with different rules for those who began working before and after July 1, 1997, though the standard age for claiming full benefits is generally 65.

Key Points

Statutory Age vs. Effective Age: While the official retirement age for formal pensions is 65, many Mexicans, particularly men and women over 65, continue working due to economic pressures.
Dual Pension Systems: Mexico has two main pension systems based on whether a worker began contributing before or after July 1, 1997, with different rules for benefits and eligibility.
Minimum Contribution Weeks: The required number of weeks has changed, especially for the post-1997 system, which is gradually increasing from 750 weeks to 1,000 weeks by 2031.
Universal Social Pension: A non-contributory universal pension, the 'Pensión para el Bienestar,' is available to all residents over 65, including foreigners with residency, regardless of their work history.
Benefit Calculation Varies: Pre-1997 pensions are based on average salary, while post-1997 pensions rely on the balance of an individual's AFORE account.

The Complex Mexican Pension Landscape

Retiring in Mexico involves navigating a system influenced by a worker's start date in the formal workforce and their social security contributions. Mexico's two main social security systems, governed by different Social Security Laws (IMSS), create distinct paths for calculating and receiving retirement benefits.

The Dual Social Security System: Before and After 1997

Mexico's pension framework is divided by the date July 1, 1997, which marked a shift from a defined-benefit system to one based on individual accounts.

The 'Old System' (Pre-July 1997)

Under the 1973 Social Security Law, workers contributed to a collective fund. Pensions are based on the average daily wage during the last 250 weeks of contributions and are managed by IMSS. A full old-age pension requires 500 weeks of contributions by age 65. Early retirement with reduced benefits is possible from age 60 with sufficient contributions and cessation of employment.

The 'New System' (Post-July 1997)

Workers starting on or after July 1, 1997, are under a defined-contribution system. Individual accounts are managed by private AFOREs, with contributions from the employee, employer, and government. The minimum retirement age for a full pension is 65. The minimum contribution weeks, initially 1,250, were reduced by 2020 reforms to start at 750 in 2021 and will reach 1,000 by 2031. Benefits depend on the accumulated AFORE account balance.

Contribution Rules and Eligibility

Meeting weekly contribution requirements is essential for pension eligibility. Recent reforms in 2020 aimed to improve access, particularly for those with lower incomes or varied work histories, by gradually lowering the required contribution period for the 'New System'.

The Universal Pension Program

Beyond the contributory systems, Mexico offers a universal social pension, the "Pensión para el Bienestar de las Personas Adultas Mayores." This non-contributory program provides a basic income to residents over 65, regardless of work history, serving as a safety net for those in the informal sector.

Statutory vs. Effective Retirement Age

Despite the statutory retirement age of 65 in the modern system, many Mexicans work into their late 60s or 70s. OECD data indicates a higher average effective retirement age, often due to the need for sufficient income, highlighting the gap between official policy and economic reality.

Comparison of Mexican Pension Systems


Feature	Old System (Pre-July 1997)	New System (Post-July 1997)
Governing Law	1973 Social Security Law	1997 Social Security Law
Type	Defined-Benefit (PAYG)	Defined-Contribution
Account Management	Mexican Social Security Institute (IMSS)	Private AFOREs (Pension Funds)
Full Pension Age	65 (Pensión de Vejez)	65 (Pensión de Vejez)
Early Retirement Age	60 (Pensión de Cesantía)	No early retirement for full benefits
Minimum Contributions	500 weeks	750 weeks (gradually increasing to 1,000 by 2031)
Benefit Calculation	Based on average salary of last 250 weeks	Based on balance of individual AFORE account

The 2020 Reforms and Their Impact

The 2020 pension reforms aimed to enhance future retirement outcomes by increasing employer contributions, lowering the minimum contribution weeks for the new system, and raising the guaranteed minimum pension. These changes sought to address low replacement rates in the AFORE system.

Considerations for Retirement Planning

Retirement planning in Mexico, especially for expatriates, requires understanding the different systems. Pension eligibility depends on formal employment contributions. Foreign residents should consult official Mexican social security sources. For detailed information on AFOREs, consult the Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR). Expats may rely on foreign social security or private savings. The universal pension is available to all residents over 65.

Conclusion

The age of retirement in Mexico is linked to historical changes in social security. Workers under the pre-1997 system have different benefit calculations than those under the post-1997 AFORE system. The universal social pension provides additional support, acknowledging the reality of many working past the official age. Effective retirement planning in Mexico necessitates understanding this multi-layered structure.

Frequently Asked Questions

For private sector workers in Mexico who started contributing to social security on or after July 1, 1997, the official age to claim an old-age pension is 65 years old.

Under the current pension system, the official retirement age is 65 for both men and women. There are no distinctions based on gender in the eligibility criteria for a full pension.

The 'Old System' is for workers who started before July 1, 1997, and uses a defined-benefit structure based on a collective fund. The 'New System' is for those who started after this date and uses a defined-contribution structure with individual AFORE accounts.

The required contribution weeks depend on the pension system. For the 'Old System' (pre-1997), 500 weeks are needed. For the 'New System' (post-1997), the requirement is gradually increasing from 750 weeks in 2021 to 1,000 weeks in 2031.

Yes, but with limitations. Under the 'Old System', workers can claim a reduced pension from age 60 if they meet certain criteria. Under the 'New System', early retirement is possible at age 60, but only if the individual's AFORE account balance is sufficient to fund a benefit at or above the guaranteed minimum pension.

The 'Pensión para el Bienestar' is a universal, non-contributory pension for all residents aged 65 and over, providing a basic income supplement. It is separate from the formal contributory pension systems.

The average effective retirement age is higher due to socioeconomic factors. Many Mexicans face financial pressures and continue to work past the official retirement age because their pension or savings are not sufficient to cover their living expenses.

References

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.