Introduction
In September, there were 25.3 million Afore (Mexican retirement accounts) accounts held by women, with an average balance of 111,739 pesos. This figure highlights a significant gender disparity in retirement savings, leaving women vulnerable despite making up more than half of the population.
Gender Disparity in Afore Accounts
According to the National Commission for the System of Retirement Savings (Consar), women had 25.3 million Afore accounts by September, while men reported 33.8 million accounts during the same period. This represents a gap of 8.5 million accounts, or 25%, demonstrating that women face greater challenges in saving for retirement.
Factors Contributing to the Disparity
Several factors contribute to this disparity, including the gender gap in labor participation and women’s tendency to work in informal sectors.
- Lower Labor Participation: Alejandra Macías, director of the Center for Economic Research and Budgeting (CIEP), mentioned a 30-point gap in labor participation, with eight out of ten men working compared to only about five out of ten women.
- Wage Gap: Women often earn less than men, even in the same positions. This wage disparity directly impacts their retirement savings.
- Job Instability: Women frequently change jobs, which can lead to inconsistent contributions to their retirement accounts.
The Impact of Caregiving Responsibilities
Labor issues are intertwined with caregiving responsibilities, traditionally shouldered by women in Mexico.
- Flexible Work Arrangements: Women seek flexible work hours to balance caregiving and lower-paying jobs, often resulting in informal employment without social security benefits or consistent retirement savings.
- Informal Employment: Many women work in informal sectors due to flexible hours, which do not provide retirement benefits.
Lower Average Savings
Not only do women have fewer Afore accounts, but their average savings are also lower than those of men, further exposing them to retirement vulnerability.
- Average Savings: Men have an average Afore balance of 146,758 pesos, while women hold 111,739 pesos on average. This represents a 24% lower retirement fund for women compared to men.
Addressing the Issue
Alejandra Macías emphasized the need to change societal mindsets and redistribute unpaid tasks traditionally assigned to women. She also highlighted the importance of implementing public policies that encourage more women’s participation in the formal labor market.
