Starting the upcoming year, the minimum retirement age for male ISSSTE workers will be 58 and for female workers, it will be 56, according to a new presidential decree for those falling under the Décimo Transitorio clause. The question is, what will be the retirement age for 2026?
According to the Official Gazette of the Federation (DOF), workers qualify for these conditions if they have contributed at least 30 years or more, and women must have contributed at least 28 years or more. Additionally, they cannot have opted for the ISSSTE pension bonuses accreditation. For 2026, the retirement age will be 58 for men and 56 for women.
Gradual Reduction of Retirement Age
The retirement age will continue to decrease annually. Starting from 2034, workers can retire at 55 and women at 53.
Changes in ISSSTE Law and Décimo Transitorio
On April 1, 2007, a new ISSSTE law established an individual pension regime. Workers who were active at that time and chose to stay in the previous scheme instead of joining the new regimen are those who contribute under Décimo Transitorio.
This group can retire for jubilation, age and service time, and advanced-age severance but is the only one that benefits from retiring at a younger age, according to President Claudia Sheinbaum’s June 24, 2024 presidential decree.
Financial Impact of Reduced Retirement Age
Carlos Ramírez Fuentes, Integralia consultancy’s partner and former president of the National Commission for Retirement Savings (CONSAR), commented on X that the reduction is “unjust, deeply regressive, and very costly.” Although the exact cost has not been disclosed, he estimated it to be “tens of billions of pesos.”
Moisés Pérez, founder of Yo Jubilado Estrategias para tu retiro, mentioned that this decree presents financial challenges for the institute since contributions start at an earlier age but pensioners still receive lifelong benefits.
Héctor Villarreal, a professor at Tecnológico de Monterrey, emphasized that the pension system faces “multiple financial pressures,” with over 20% of the national budget allocated to pension payments, a figure that grows each year.
Key Questions and Answers
- What is the new decree about? The new presidential decree reduces the retirement age for ISSSTE workers who fall under the Décimo Transitorio clause.
- Who is affected by this decree? Male ISSSTE workers will retire at 58 and female workers at 56, provided they meet the contribution requirements.
- What are the financial implications? Experts like Carlos Ramírez Fuentes and Moisés Pérez have expressed concerns about the financial impact, citing potential costs in the tens of billions of pesos and challenges for the institute.
- Why is the retirement age being reduced? The decree aims to accommodate the increasing life expectancy and associated financial pressures on the pension system.
