The global economic situation begins to take its toll on retirement plans of people. A significant portion of the workforce has lost confidence in retiring at age 65. According to work monitor of Randstad, the 58% of Mexican workers assures that the economic context will prevent them from fulfilling their retirement project from working life.
“The pensions are not enough to maintain the minimum quality of life, and what is sought is to somehow increase income. There are many issues, such as age and what you have saved,” says Marcela Calderón, partner of Social Security and Fiscal Services in Remunerations at KPMG Mexico.
The phenomenon is global, in fact, 18% of people plan to delay their retirement due to increases in living costs. In our country the proportion is slightly higher, with the 19% of workers which shows the same thing.
“Many return to work as economic reality sets in, especially as rising energy and household costs take a toll on their savings and pensions. He 70% of respondents people around the world say that their economic situation prevents them from leaving as soon as they would like,” the report highlights.
Among the main factors that the workers themselves refer to as barriers to retiring from working life at age 65, they are:
- The economic situation
- The need to have a job in life
- Wait for a specific goal
- Feeling of obligation to the company
- no interest in retiring
For Moisés Pérez Peñaloza, leader of AON’s Retirement and Financial Well-being for Latin America, this phenomenon is linked to two factors: the first is a better life expectancy, which translates into an interest in continuing to be active in the labor market after a retirement age; the second reason is related to the economic part. “Let’s think of the people who do not have a pension with the Law of 97 where there is no guaranteed income and the pension is determined by savings.”
However, the challenge is different when people delay their retirement plans out of economic necessity to when they do it out of a desire to stay active in the world of work, points out the specialist.
In the past year, confidence among the workforce to retire before age 65 has declined worldwide, the proportion falling from 61 to 51% among those who think this will be possible.
Retirement plans, the Randstad research warns, will become a challenge for companies and workers, because the aging of the population will reach a critical level in this decade.
“The savings incentives for the new generations that have a new way of thinking have to come through the fiscal benefits, and financial savings products must be more widely disseminated. Definitely we must promote the culture of savings and financial education, start from children”, says Marcela Calderón.
For his part, Moisés Pérez Peñaloza stresses that all actions to promote savings and expense planning will have a generational effect. “That takes years or generations to achieve, the answer is complex because we are in the prelude to having million retirees in the country”.
Occupational safety, an increasingly relevant element
Connected with the effect of economic uncertainty, in the last year job security became more relevant among the collaborators. Mexico is no exception in this regard. In fact, at 61% of people in our country they are worried about losing their job, this represents almost twice the global average.
“Anxiety is growing as a result of a series of major layoffs over the past year, which included many senior positions at technology companies,” the report says.
In this sense, the 68% of Mexican workers He assures that he would not accept a job that does not guarantee stability, a level slightly higher than the global 63%. Meanwhile, 77% of employees express concern about the impact of economic uncertainty on their work.
“Insecurity is growing not only because of layoffs. Many feel that they cannot cope with the rising cost of living, ”Randstad indicates in his research.
In addition to the concern for job stability, the loss of purchasing power due to the inflationary environment causes 31% of workers in Mexico to consider having a Second jobwhich also exceeds the global average of 25 percent.
